08/05/2009
ConAgra Foods Lamb Weston's New Processing Facility Will Become One Of Northeast Louisiana's Top 10 Private-sector Employers
ConAgra Foods Lamb Weston will construct
first large-scale processing facility in the world dedicated to
high-quality, frozen sweet potato products, creating at least 500
new jobs and over $210 million in capital investment
Today, Gov. Bobby Jindal and Louisiana Economic Development
Secretary Stephen Moret joined ConAgra Foods Lamb Weston Inc.
President Jeff DeLapp and Senior Financial Officer David Richardson
to announce the company will construct the first large-scale
processing facility in the world dedicated to high-quality, frozen
sweet potato products near Delhi, La.
The company will invest over $210 million in a new state-of-the
art, environmentally friendly facility, creating a minimum of 500
new direct jobs, with an average annual salary of approximately
$35,000, plus benefits. Upon completion, the ConAgra Foods Lamb
Weston facility is expected to become the largest private-sector
employer in Richland Parish, as well as one of the 10 largest
private-sector employers in Northeast Louisiana.
The facility will be constructed in two phases, with the first
phase ($156 million) scheduled for completion by late 2010 and a
second phase ($55 million to $100 million) by February 2014.
Initial permanent employment will include at least 275 full-time
workers; employment will increase to 500 to 600 full-time employees
with the completion of the second phase of the project. The new
facility will process Louisiana sweet potatoes into sweet potato
fries, with plans to process additional products.
"Today's announcement that ConAgra Foods, a leading Fortune 500
company, has chosen to make a major investment in Louisiana is
further evidence of why our state continues to buck national
economic trends," said Gov. Jindal. "ConAgra Foods joins a
prestigious list of companies that have recently recognized our
state's potential by announcing new investments here -- nationally
recognized names like Albemarle, Foster Farms, The Shaw Group,
Northrop Grumman, ExxonMobil, EA, Coca-Cola, Gardner Denver and the
new V-Vehicle Co. The reforms we have made to establish a strong
economic environment continue to pay off.
"Indeed, ConAgra Foods Lamb Weston's decision to locate its
first processing facility dedicated to sweet potatoes here
reinforces the vision of a New Louisiana we laid out when taking
office. I said that we were going to make lasting and positive
change not over the course of decades -- but in short order.
"For decades, we watched as our commodities -- from agricultural
crops to our basic chemicals -- were being shipped to other states
where they added value to them in processing facilities and sold
them for higher prices, and created good jobs in the process.
"No longer are we going to sit idly by as Louisiana's own
commodities go to other states so they can create jobs by
processing our resources. ConAgra Food's decision means that we can
use our homegrown commodities to create good jobs for our people
and produce quality products for the rest of the country. This win
shows that we must not underestimate the quality of our people or
our products. Indeed, we can compete with anyone in the world."
A brand of ConAgra Foods Inc. (NYSE: CAG), Lamb Weston is
creating one of the first food plants in the country built from the
ground up with the newest and best processing and packaging
technologies in the industry, which will also follow LEED, or
Leadership in Energy and Environmental Design, standards for
environmentally sustainable construction. Registered with the
United States Green Building Council, the plant's design will
incorporate features, such as natural lighting and minimally
irrigated landscaping.
"Lamb Weston is already the leading provider of frozen sweet
potato products to restaurants and retailers around the world, and
we look forward to continuing to grow that leadership position in
the market with this significant investment," said DeLapp. "Not
only is the state of Louisiana known for its high-quality sweet
potatoes, it offers a great environment for business and a skilled
workforce. Gov. Jindal and LED have gone out of their way to make
this plant possible, and we are grateful for their support."
"This significant investment is indicative of the big
opportunity we see in our potato platform," said Gary Rodkin, CEO,
ConAgra Foods. "Potatoes, including sweet potatoes, are a strategic
priority for ConAgra Foods, and we are committed to expansion in
this area. This new plant will further our North American
leadership position in potatoes by supporting growth in an adjacent
category, and add to our worldwide presence."
The project is expected to enable Louisiana's sweet potato
farmers to expand the state's sweet potato acreage in North
Louisiana to meet the company's aggressive production needs. With
approximately 15,000 acres dedicated to sweet potato growth,
Louisiana is third in the nation for total sweet potato acreage,
behind only North Carolina and Mississippi.
"ConAgra Food's choice of Louisiana is part of an emerging trend
in which Louisiana has become increasingly successful at attracting
value-added agribusiness projects," said Moret. "Like Zagis USA and
Dynamic Fuels, both of which broke ground last year, ConAgra Foods
Lamb Weston will capitalize on Louisiana's strengths in the
agricultural sector and leverage those strengths to create new
products that are appealing to the marketplace. We will continue to
aggressively and strategically pursue value-added agribusiness
projects, as well as others in emerging growth sectors that will
help position Louisiana for diversified, sustainable growth."
Economic Impact
An economic-impact analysis conducted by LSU suggests that the new
facility will provide an injection of $2.1 billion to $2.4 billion
in new state economic output from 2009 to 2025, including increased
wages totaling $0.9 billion to $1.1 billion.
LSU further estimates that the 500 to 600 direct, new on-site
jobs will create 1,420 to 1,704 indirect jobs for a total of 1,920
to 2,304 total new jobs in Louisiana. Accordingly, ConAgra Foods
Lamb Weston's new facility will become one of Louisiana's top 100
economic-driver firms (out of roughly 120,000 total current
employers) based on direct and indirect job impact.
The new facility's average salary of about $35,000, plus
benefits, will be approximately 30 percent higher than the current
average salary per job in Richland Parish, and about 44 percent
higher than the current per-capita income in Richland Parish.
"This is an exciting announcement for Delhi, Richland Parish and
the Northeast Region of Louisiana," said Mayor Lynn Lewis. "Our
people have a great work ethic. And I look forward to a long and
successful partnership between ConAgra Foods Lamb Weston and our
community."
Incentives
As part of the state's incentive package, ConAgra Foods Lamb Weston
will receive a grant of $32.4 million to $37.4 million toward plant
processing equipment and site infrastructure from the Mega-Project
Development Fund, if all performance measures are met relative to
capital investment and payroll commitments. The exact amount of the
mega fund contribution will depend on the size of the second phase
of the project. The company also will take advantage of Louisiana's
Industrial Property Tax Exemption program and customized workforce
recruitment, screening and training developed by Louisiana
FastStart™, a turnkey workforce solutions program offered to
expanding and new companies at no cost.
LSU estimates that ConAgra Foods Lamb Weston will generate $70
million to $81 million in new state tax revenues, excluding
increased corporate income taxes, over the term (2009 to 2025) of
its cooperative endeavor agreement, or CEA, with the state of
Louisiana.
The city of Delhi is expected to expand its sewer and water
capacity to accommodate the new facility, the cost of which will be
covered with fees assessed on the new facility. Richland Parish
also is expected to contribute funding toward an access road or
other site infrastructure. LSU estimates that local governments
will receive $19 million to $22 million in new tax revenues over
the life of the CEA.
Site Selection Competition
During the site selection process, Lamb Weston investigated
locations in several states, as well as multiple sites in Northeast
Louisiana. States initially were considered based on their ability
to grow high-quality sweet potatoes, as well as their
transportation logistics, water supply and workforce
characteristics.
Critical site selection factors that helped Louisiana win this
new state-of-the-art facility included quality and availability of
the area workforce; Louisiana FastStart; competitive financial
incentives; a strong state-and-local economic development team;
support from local elected officials; and a research and
development partnership with the LSU AgCenter Sweet Potato Research
Station, which is the only research facility in the U.S. dedicated
to sweet potatoes.
ConAgra Foods Lamb Weston joins a growing list of major economic
development wins in Northeast Louisiana since Gov. Jindal has
entered office.
These projects include Foster Farms, which saved thousands of
direct and indirect jobs; the Gardner Denver Thomas expansion
project, which saved around 70 jobs and will result in about 230
new jobs, many of which already have been created; Computer
Programs and Systems Inc., which will result in about 100 new jobs;
and V-Vehicle Company, which will result in 1,400 new jobs and
around 1,800 new indirect jobs.
About ConAgra Foods Lamb
Weston
ConAgra Foods Lamb Weston is North America's premier supplier of
frozen potato, sweet potato, appetizer and vegetable products,
serving both the foodservice and retail industries. Lamb Weston
currently markets sweet potatoes to restaurants under the Sweet
Things® brand. The company also offers a line of all
natural sweet potato products under the Alexia® brand
through supermarkets and specialty stores. For more information,
visit www.lambweston.com.
About ConAgra Foods
ConAgra Foods Inc. (NYSE: CAG) is one of North America's leading
packaged food companies, serving grocery retailers, as well as
restaurants and other foodservice establishments. Popular ConAgra
Foods consumer brands include: Banquet, Chef Boyardee, Egg Beaters,
Healthy Choice, Hebrew National, Hunt's, Marie Callender's, Orville
Redenbacher's, PAM and many others. For more information, visit www.conagrafoods.com.
