Lamb Weston / Meijer and Belaya Dacha establish Joint Venture to serve Russian French fry market
New French fry factory planned to be built in Lipetsk (Russia) to support key customers
Bas Alblas, CEO of Lamb Weston / Meijer, and Victor Semenov, Chairman of the Supervisory Board of Belaya Dacha, signed an agreement to establish a Joint Venture.
Aim of the newly created Joint Venture is to invest in a new French fry plant in Lipetsk in order to support key customers in the rapidly growing Russian market. The total investment will be over EUR 100 million.
Bas Alblas, CEO Lamb Weston / Meijer: “Our new Joint Venture will provide us with a unique opportunity to expand our position in the Russian market, while supporting our international key clients in optimising their own value chain, growing their businesses in the region and meeting local needs.”
This close collaboration enables Lamb Weston / Meijer and Belaya Dacha to combine their complementary knowledge and skills.
Victor Semenov, Co-owner and Chairman of Belaya Dacha: “Both companies benefit from each other’s unique knowledge, skills and expertise. We can take advantage of Lamb Weston / Meijer’s in-depth experience in potato growing and high quality French fry production, while leveraging Belaya Dacha‘s experience in the Russian quick service and retail market and our own construction division.”
In the Joint Venture, the international frozen potato processing company Lamb Weston / Meijer cooperates with the Russian Group of Companies Belaya Dacha. Belaya Dacha will be the majority shareholder in this Joint Venture.
To secure potato supply, the Joint Venture will make use of its own farm in the Tambov region and will work closely together with dedicated Russian farmers.
First French fry factory in Russia
The new factory will be the first French fry factory in Russia. It will be constructed in the special economic zone in Lipetsk, situated 450 km south of Moscow. The total investment for this new factory is over EUR 100 million. This project will be financed with equity and long-term financing from Sberbank, one of the largest financial institutes in Russia. The start of the construction is planned by mid-2016 and production is projected to start early 2018. The French fry plant with a production capacity of 90,000 tons per year, will be supplied by a dedicated network of Russian farmers.
The transaction is subject to approval by the Russian Federal Anti Monopoly Service (F.A.S.).
About Lamb Weston / Meijer
Lamb Weston® is a world leading brand in high quality potato products, and is sold in over 100 countries around the world. Lamb Weston / Meijer serves markets in Europe, the Middle East, Africa (EMEA) and Brazil. The company supplies frozen potato products like Twisters®, Potato Dippers and Connoisseur Fries to customers in the Foodservice, Quick Service and Retail segments. Lamb Weston / Meijer is also an ingredient solutions provider for the food industry. For more than 20 years, Lamb Weston / Meijer has led the industry in innovation, by introducing inventive products that add convenience to the operations of our customers and make eating more delicious for their customers. From the fields where our potatoes are grown to proactive customer partnerships, Lamb Weston / Meijer always raises the bar. Lamb Weston / Meijer has its headquarters in Kruiningen - The Netherlands. The company operates five factories: three in the Netherlands, one in the United Kingdom and one in Austria. Lamb Weston / Meijer employs 1,300 people in the EMEA region.
About Belaya Dacha
The Belaya Dacha Group combines a variety of businesses specializing in growing and processing of vegetables, planting trees, garden and landscape design and in recent years extensive real estate development. Belaya Dacha is the number 1 brand in the fresh-cut salads category on the Russian market and has two production facilities: one in the Moscow region and one in the Republic of Tatarstan. Having spent more than 95 years working in the agricultural industry and being a major land owner in the Moscow region, Belaya Dacha began to focus on real estate development in 2003. Starting with development of Class A warehouses, Belaya Dacha’s portfolio of completed projects today is over 1 million sqm and includes 150.000 sqm of logistics properties, Mega Belaya Dacha, Outlet Village Belaya Dacha, residential and mix use development projects.