Lutosa invests 225 million in major capacity increase

Belgian potato processor Lutosa is investing 225 million euros to expand its factory in Waregem. This should more than double the plant’s annual production capacity to 335,000 tonnes.

Fifth of global potato market

The subsidiary of Canadian giant McCain said that the expansion will be operational by September 2026 and expects the additional capacity to be fully utilised in 2027. The expansion includes a new production line for frozen crisps, an expanded sorting station, extra office space and a water purification plant that reuses 85 % of used water. This would also entail the creation of a hundred new jobs.

The capacity at Waregem site would increase from 145,000 to 335,000 tonnes, without significantly expanding the site, CEO Alain Dufait told Belgian newspaper De Tijd. However, it would require doubling the number of supplying farmers, which further intensifies the competition in West Flanders. Currently, 90 % of the potatoes come from a radius of fifty kilometres around the factory. Dufait points out the importance of good relations with local farmers and sees growth opportunities in Southern Belgium and Northern France.

The global market for potato products is growing by an average of 3 % per year, driven by the growing middle class and the popularity of Western eating habits in regions such as Southeast Asia. Roughly 20 % of the 15.5 million tonnes of frozen fries consumed worldwide come from Belgium, and a company like Lutosa exports 95 % of its production to 140 countries. In 2023, the company achieved a turnover of 650 million euros and an operating profit of 126 million euros, while local competitor Clarebout is on its way to two billion euros in turnover.