(By Balaseshan) ConAgra Foods Inc. (NYSE: CAG) said it will expand its Lamb Weston frozen potato facility operations in Boardman, Ore that will increase capacity for making french fries and other frozen potato products.
The $200 million strategic investment will add a new line to the plant and is expected to create about 100 jobs for the region. Construction of the 192,000 square foot, state-of-the-art addition is expected to begin in early 2013 with completion in 2014.
The expansion does not alter ConAgra's existing fiscal 2013 capital expenditure guidance.
As consumer demand for frozen potato products continues to grow both domestically and internationally, this significant capacity increase is needed to fulfill Lamb Weston's customer growth projections, particularly the dynamic growth expected from international markets.
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With easy access to the Port of Morrow, the Boardman facility is strategically situated to support both domestic and international growth plans of Lamb Weston customers. Proximity to prime growing and shipping operations also helps reduce transportation needs, supporting Lamb Weston's efforts to shrink its carbon footprint.
ConAgra Foods Lamb Weston is an employer in the Columbia River Basin – an area known for growing high-quality potatoes and other vegetables. The company operates seven facilities in the region employing nearly 4,500 people, including 500 employees in Boardman and 500 in Hermiston, Ore.
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CAG is trading up 0.51% at $27.83 on Friday. The stock has been trading between $23.64 and $28.80 for the past 52 weeks.