Argentina: Lamb Weston closes its plant in Munro, lays off 100 employees and centralizes its production in Mar del Plata.

At the end of last year, Lamb Weston, the frozen potato producer, opened a new plant in the Mar del Plata Industrial Park with an investment of 320 million dollars.

This plant is the largest on the continent for the US company and the second in operation within Argentina, in addition to the one located in Munro, Buenos Aires province.

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However, the closure of the Munro plant was recently announced, meaning the company will concentrate all its operations at the new facility in Mar del Plata. This decision will result in the dismissal of 100 employees.

According to a statement from Lamb Weston, the Munro plant will cease operations and production destined for Latin America will be consolidated at the modern facility in Mar del Plata.

The company’s regional headquarters will remain in Buenos Aires. The closure is part of a global strategy aimed at optimizing profitability and improving operational efficiency and capital utilization across its manufacturing network. According to Sylvia Wilks, supply chain director, efficient cost control throughout the chain allows the company to generate greater value for customers and focus on investments that modernize physical assets, making operations more resilient, efficient, and prepared for future growth.

Lamb Weston assured that the approximately 100 employees affected by the closure of the Munro plant will receive the corresponding severance pay in accordance with current local regulations. The new plant, located on an 18-hectare site, has the capacity to produce 120,000 tons of frozen pre-fried potatoes annually, along with 4,200 tons of potato flakes and 1,750 tons of potato starch. This complex will employ between 250 and 300 workers, with plans for an additional investment of $130 million in the coming years.

The company believes that Argentina produces "the best potatoes in the world" and uses this strategic position to supply the region, with a primary focus on the Brazilian market. Currently, 90% of its production is exported.