McCain Foods Building $69 Million Plant
To Expand Frozen Market in South Africa

McCain Foods is putting 500 million rands ($81 million Canadian, or $69 million US) into expansion of its plant at Delmas, Mpumalanga Province, South Africa.

Upon completion, the factory will supply a new range of potato products to the local market. The facility, which is expected to be in production in early 2008, was announced by Canadian Governor General Michaëlle Jean during a state visit to South Africa, where she met with President Thabo Mbeki.

McCain Foods South Africa’s managing director, Owen Porteus, said the plant was expected to boost employment in the Delmas region, though its success depended on the local authority’s ability to extend its water, electricity and effluent management infrastructure. The increased investment reflected McCain’s rapid growth in the country and its confidence in the South African economy, he said.

“Growth, however, is not just in terms of physical and product expansion, but also in the partnerships that we have developed and enjoy with farmers throughout the country. Together we aim to increase the consumption base for a very wide range of frozen vegetables across domestic, retail and foodservice markets within South Africa,” said Porteus.

He added that McCain is trying to recruit black managers and engineers. The company has started a potato seed project which will be handed over to black farmers after five years. In Lichtenburg, North West Province, most of the 10,000 tons of potatoes supplied from the area will come from black farmers by next year.