US-based ConAgra Foods Lamb Weston and its Netherlands-based partner Meijer Frozen Food have announced to form a new joint venture to cater to the Russian market.
The establishment of the joint venture is subject to approval from Federal Anti-monopoly Service (FAS).
The collaboration is expected to integrate the complementary knowledge and skills of Lamb Weston / Meijer and Belaya Dacha.
Lamb Weston / Meijer is a partnership between Lamb Weston and Meijer Frozen Food.
The partnership will gain from from Lamb Weston / Meijer's in-depth experience in potato growing and french fry production.
On the other hand, it will leverage Belaya Dacha's experience in the Russian quick service market.
The partnership will invest to build a new french fry manufacturing facility in Lipetsk, a special economic zone located 280 miles south of Moscow.
Construction of the plant is scheduled to start in mid-2016 and the production will commence in early 2018.
Lamb Weston President Greg Schlafer said: "Lamb Weston leverages its well-established dual sourcing model to supply customers in North America and Europe.
"This new partnership between Lamb Weston / Meijer and Belaya Dacha will allow our partners at Lamb Weston / Meijer to serve our customers expanding in the growing Russian market."
Earlier this month, Lamb Weston announced that it would invest $200m to expand operations at its Lamb Weston's facility in Richland, Washington, US. The expansion will see an addition of a new french fry processing line at the plant.
The expansion work is expected to be completed by the fall of 2017, with the new processing line increasing the facility's annual capacity by over 300 million pounds.
Last week, The Wall Street Journal reported that cereal maker Post Holdings had held discussions to merge with ConAgra Foods' Lamb Weston frozen potato business.
