Clarebout Potatoes is proposing to close its Moeskroen 1 facility in Belgium, citing mounting pressure in the frozen-potato market.
In a statement, the JR Simplot-owned group said it has informed employees and their representatives about the “possible cessation” of production at the site.
Clarebout has also opened an information and consultation procedure around the potential shutdown, in line with Belgian legislation.
Although no final decision has been taken, the company said the consultation process will enable employee representatives to provide feedback, ask questions and explore alternatives to a full closure.
If the proposal moves forward, production at Moeskroen 1 could be phased out gradually. Up to 392 employees would be affected.
Clarebout said it is “committed to supporting its employees” throughout the process, acknowledging that the proposal will create “uncertainty for employees and their families”.
Owned by Clarebout subsidiary Mydibel, Moeskroen 1 is the smallest manufacturing facility across the group's production footprint.
The site relies on “older equipment”, which inflates unit costs per tonne and lowers operational efficiency relative to the company's modern plants, the statement added.
The Belgian facility previously faced strike action in October last year amid a dispute over bonuses tied to US-based JR Simplot's takeover of the business.
Clarebout cited “ongoing challenges” in the frozen-potato sector to justify the potential shutdown.
The group said its production capacity “exceeds expected demand” by 14% to 20%, while it continues to carry fixed overheads built for higher output volumes.
It added: “The proposal for Moeskroen 1 is intended to better align production capacity with demand and support the long-term competitiveness and sustainability of the company’s operations.
“Clarebout Potatoes intends to continue investing in other facilities across its network to improve efficiency, enhance product quality and support future growth opportunities.”
Clarebout and its affiliates currently employ around 3,000 people across Belgium and France.
