ConAgra's potato processing unit, ConAgra Foods Lamb Weston, has formed a strategic partnership with Unisur Alimentos Ltd, the only frozen French fry and dehydrated potato-processing company in Chile.

The companies intend to work together to grow their businesses in the Chilean and South American markets.

Terms of the partnership were not disclosed, but the groups did reveal that it would see an expansion of production facilities located in the Region of the Lakes, Llanquihue.

Unisur said that the deal would allow it to benefit from Lamb Weston's experience of the North American and European markets.

"This partnership with Lamb Weston is significant for Unisur in that it allows us to build on our unique base in Southern Chile," said James Hungelmann, executive director of Unisur.  "Lamb Weston is well-known and well-respected for their experience and capabilities internationally, and we believe partnering with Lamb Weston will accelerate our growth plans for market leadership."

For its part, Lamb Weston said the partnership would further its ambitions to develop the business internationally.

"Our partnership with Unisur supports Lamb Weston's focus on international growth," said Jeff DeLapp, president of Lamb Weston. "Unisur is situated in one of the best potato growing areas in South America and we believe their existing business model and people provide a solid foundation for further growth of the South American market."