McCain picks UK for chip plant


24 September 2001



McCain picks UK for chip plant

By Robert Harris

FROZEN chip specialist McCain is to build a new 70 million factory in the West Midlands, preferring the UK to Europe despite the strong Pound.

The plant, earmarked for a brownfield site in Rugeley, will need 380,000t of potatoes a year, taking the companys total requirement to over 1m tonnes, 16% of the national crop.

The project will create 150 new jobs and support 1000 jobs in agriculture, claims McCain.

The decision to build in the region reflects the high quality of the British potato industry, says chief executive Howard Mann.

“It is good news for McCain, British potato growers and our customers who show every sign of wanting more high quality products from high quality producers.”

It also makes economic sense, says UK managing director, Nick Vermont.

This is despite present exchange rates, which mean choosing France, Holland or Belgium could have saved the company about 5m a year.

“The current low value of the Euro makes importing product into Britain very attractive. But this factory will have an active life of 35-40 years.

“Over that time, we would expect it to make sense to build in the country of consumption.”

McCains current UK turnover is 350m from 420,000t of frozen and chilled potato products at five sites.

Mr Vermont is confident that, even with the new capacity, UK growers will be able to supply all its potatoes.

Imports accounted for at least 15% of McCains raw material last season, said Mr Vermont. But that was due to appalling weather in the UK, he added.

“It is never our objective to import.”

The new site should be built by 2004, and capacity could be expanded to about 1m tonnes within a decade.

Nigel Jupe, chief executive of the British Potato Council, welcomed the news. “I know there were good arguments put forward for it to be situated elsewhere.

“This is a vote of confidence in the long-term quality of the UK potato processing supply chain.”

The NFU is also pleased that McCain decided to buck the current trend and invest in the UK.

“The news will be welcomed by growers at a time when the strength of the Pound relative to the Euro has been doing a huge amount of damage to our industry,” said head of commodities, Simon Lunniss.

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