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December 17, 2020

McCain reveals China expansion plans

Canada-based potato products giant McCain Foods is to expand in China to meet local demand, it has announced.

By Leonie Barrie

Canada-based potato products giant McCain Foods is to expand its production network in China, it has announced.

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The frozen fries heavyweight said it is to spend US$200m on a second facility in the country which will be located in Yangling Agriculture Hi-Tech Development Zone, Shaanxi Province.

McCain, which has operated in China for 25 years, said the investment is necessary to meet the growing demand there for its products which its sells into the foodservice channel and, more recently, through retail outlets.

“Through increased capacity and specialised production capability, working closely with local farmers to source high-quality raw potatoes, McCain Foods will continue to lead innovation in frozen potato products that meet growing market demand for locally prepared products across a range of cuisines,” it said.

McCain’s China operation is headquartered in Shanghai and employs 400 people. Its existing production facility is in Harbin, in China’s north-eastern Heilongjiang province.

Globally, the company operates in more than 160 countries and has 51 manufacturing facilities. In October, McCain announced it had started a construction project at a plant in The Netherlands. The same month, the company re-booted a US$300m expansion plan for a plant in the US that was put on hold due to the uncertainty wrought by Covid-19. 

Related Companies

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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