French McCain Foods launched in Harbin
By Li Fangchao (China Daily)
Updated: 2004-11-29 09:00

McCain Foods Ltd, the world's largest manufacturer of frozen French fried potatoes, has kicked off construction of a French fry processing facility in Harbin, capital of Northeast China's Heilongjiang Province.

The new company, which was registered in the Harbin Economic and Technological Development Zone (HETDZ), will be McCain's first processing facility in Asia.

The first phase, which involves an investment of US$32 million on an area of 230,000 square metres, is expected to begin commercial production in September 2005.

A 7.5 ton/per hour plant and two associated potato storage facilities will be constructed.

"Our new plant in China will solidify our position as a major supplier to the expanding Chinese market and will enable us to meet increasing market demand with a quality domestically produced product," said Dale Morrison, president and CEO of McCain Foods Ltd in the announcement to construct the new facility.

McCain Foods now produce one third of the world's French fries.

The company has more than 55 production facilities on six continents, of which 32 are potato processing facilities, and sells products in more than 110 countries.

McCain Foods entered the Chinese market in 1996 when a sales office was established in Shanghai for importing French fries and vegetables.

The new facility in Harbin will be its first processing facility in Asia and serve as headquarters for McCain China.

The facility will not only meet the demand of the Chinese French fry market but also export its products to other north Asian markets, such as Japan and South Korea.

An estimated group of 120 people will be employed in the new facility.

McCain Foods has been preparing for its expansion in China for a long time before it finally chose Harbin.

As one of the most important commodity grain production bases in China, Heilongjiang Province produces the largest output of potatoes yearly.

With its unique geological position adjacent to Russia, Harbin may prove an ideal investment location for companies who want to tap the Far East market, he said.

"The continual demand of raw materials of the new facility will help readjust the plantation structure around Harbin, improve the quality of potatoes and increase the income of farmers," he said.

McCain Foods is said to have acquired 25 per cent of the order for French fries from KFC in China in 2005 and plans to produce them in Harbin.

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