Lamb Weston Holdings Announces $250 Million Capital Investment in New French Fry Processing Facility in China; Declares Quart...
March 25 2021 - 4:30PM
Business Wire
Lamb Weston Holdings, Inc. (NYSE: LW) announced today an
expansion of french fry processing capacity in China and the
declaration of its quarterly dividend.
“The french fry category is poised for growth globally, and
China continues to be a critical market for us,” said Tom Werner,
President and CEO of Lamb Weston. “This investment of in-country
production for the China market is a clear example of our
commitment to our strategic customers and supporting their growth
plans well into the future.”
Capacity Expansion
The Company announced the planned construction of a new french
fry processing facility in Ulanqab, Inner Mongolia, China with
capacity to produce more than 250 million pounds of frozen french
fries and other potato products per year. The facility is expected
to add approximately 280 full-time positions, and will add to the
Company’s existing in-country production from its facility in
Shangdu, Inner Mongolia, China.
The new facility is expected to be completed in the Company’s
first half of fiscal year 2024. The total investment for the new
facility is expected to be approximately $250 million.
Dividend
The Board of Directors declared a quarterly dividend of $0.235
per share of Lamb Weston common stock. The dividend is payable on
June 4, 2021 to stockholders of record as of the close of business
on May 7, 2021.
About Lamb Weston
Lamb Weston, along with its joint venture partners, is a leading
supplier of frozen potato, sweet potato, appetizer and vegetable
products to restaurants and retailers around the world. For more
than 70 years, Lamb Weston has led the industry in innovation,
introducing inventive products that simplify back-of-house
management for its customers and make things more delicious for
their customers. From the fields where Lamb Weston potatoes are
grown to proactive customer partnerships, Lamb Weston always
strives for more and never settles. Because, when we look at a
potato, we see possibilities. Learn more about us at
lambweston.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Words such as
“continue,” “expect,” “support,” “invest,” “expand,” “plan,”
“will,” “add,” and variations of such words and similar expressions
are intended to identify forward-looking statements. Examples of
forward-looking statements include, but are not limited to,
statements regarding the Company’s capital investments, dividends
and business outlook and prospects. These forward-looking
statements are based on management’s current expectations and are
subject to uncertainty and changes in circumstances. Readers of
this press release should understand that these statements are not
guarantees of performance or results. Many factors could affect the
Company’s actual financial results and cause them to vary
materially from the expectations contained in the forward-looking
statements, including those set forth in this press release. These
risks and uncertainties include, among other things: impacts on the
Company’s business due to health pandemics or other contagious
outbreaks, such as the current COVID-19 pandemic, including impacts
on demand for its products, increased costs, disruption of supply
or other constraints in the availability of key commodities and
other necessary services; the Company’s ability to successfully
execute its long-term value creation strategies; the Company’s
ability to execute on large capital projects, including
construction of new production lines or facilities; the competitive
environment and related conditions in the markets in which the
Company and its joint ventures operate; political and economic
conditions of the countries in which the Company and its joint
ventures conduct business and other factors related to its
international operations; disruption of the Company’s access to
export mechanisms; risks associated with possible acquisitions,
including the Company’s ability to complete acquisitions or
integrate acquired businesses; its debt levels; the availability
and prices of raw materials; changes in the Company’s relationships
with its growers or significant customers; the success of the
Company’s joint ventures; actions of governments and regulatory
factors affecting the Company’s businesses or joint ventures; the
ultimate outcome of litigation or any product recalls; levels of
pension, labor and people-related expenses; the Company’s ability
to pay regular quarterly cash dividends and the amounts and timing
of any future dividends; and other risks described in the Company’s
reports filed from time to time with the Securities and Exchange
Commission. The Company cautions readers not to place undue
reliance on any forward-looking statements included in this press
release, which speak only as of the date of this press release. The
Company undertakes no responsibility for updating these statements,
except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210325005818/en/
Investor Relations: Dexter Congbalay 224-306-1535
Dexter.Congbalay@lambweston.com Media: Shelby Stoolman 208-424-5461
shelby.stoolman@lambweston.com
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