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McCain disputes fry plant sale rumor

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Published: May 20, 1999

Scoop Fredstrom laughed last week when asked about speculation that McCain Foods might part with its french fry plant at Portage la Prairie, Man.

“That isn’t even a consideration,” said Fredstrom, the company’s communications director at Florenceville, New Brunswick.

The speculation was prompted by McCain Foods’ decision to build a $93.9 million french fry plant in Alberta. The plant, located near Lethbridge, is expected to start production next year.

When the Alberta project was announced, McCain Foods said it needed the extra capacity to meet growing demand for its product. No thought was given to closing the Portage operation, Fredstrom said.

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An expansion of fast food chains in North America and elsewhere is driving up demand for french fries. Fredstrom said the Alberta plant will help McCain tap market opportunities in the Midwest and western United States, Mexico, Japan and South America.

“If we need the capacity, we’re not closing plants, we’re building them.”

The Keystone Vegetable Producers Association also scoffed at the notion that McCain might withdraw from Portage. Garry Sloik, the association’s secretary manager, called the speculation “wild” and “almost laughable.”

“I do not imagine McCains are going to walk away from a plant here. They’re a very progressive company and are expanding, and the world french fry market is expanding.”

The Portage plant increased production two years ago after an $82 million expansion. That expansion, said Fredstrom, created a state-of-the-art facility that the company does not plan to part with.

The expanded plant produces more than 160 million kilograms of french fries a year. About 60 Manitoba growers contract potatoes for McCain Foods.

The Canadian-based company is the world’s largest manufacturer of french fries with operations in 11 countries around the world. Its holdings on the Prairies include the french fry plant at Portage and a juice plant at Calgary.

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Ian Bell

Brandon bureau

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