McCain abandons french fries factory in Germany

No new french fries factory will be built in the North German town of Peine after all. This is confirmed by the Canadian company to local media. More than a year ago, the french fries producer still assured that it was continuing with the plans, which were going to cost about one billion euros, but that has now changed after all. McCain's move to build a brand new factory in North German Peine, or rather the town of Mehrum, is being put on hold for the time being. The company from Canada confirmed this to German media. Location remains available Economy Minister Tonne of the state of Lower Saxony still holds out a little hope. Mehrum remains an interesting location and is therefore the centre of the discussion for the future with the company. The proposed location, situated on the Mittelland Canal, is now owned by McCain and the town of Mehrum has no plans to sell it. The site previously housed a coal-fired power plant and coal port. According to McCain, this decision was made because of current market expectations in Europe. The ever-rising construction costs, due to inflation, also play a role. Last year the Canadian global company was still certain about the construction. A price tag of about one billion euros was mentioned. The state of Lower Saxony had already pledged €50 million and made a further €10 million available to attract the factory, which was to create 650 jobs. Criticism There was also criticism, especially from the surrounding area. Residents were mainly concerned about traffic nuisance. The required potatoes had to be grown in the region around Peine. The location by the canal was also strategically chosen. This allows products to be transported by ship. McCain's choice is not surprising. This month it was announced that Simplot-Clarebout is closing its factory in Mouscron close. Lamb Weston also closedd a factory in Broekhuizenvorst. After a huge expansion of capacity and a changing global market, potato processors see that they have too much capacity in Europe.