Lamb Weston Streamlines Global Footprint to Improve Efficiency

Lamb Weston Holdings, Inc. LW has announced changes to its global manufacturing footprint, beginning with plans to close its Munro facility in Argentina and shift production for Latin America to its newer plant in Mar del Plata. The company also disclosed plans to temporarily curtail a production line in the Netherlands. Together, these moves reflect ongoing efforts to manage costs and improve operational efficiency across regions.

LW Aligns Capacity With Strategy

These steps go in tandem with Lamb Weston’s broader “Focus to Win” strategy, which centers on executional discipline, cost savings and prioritizing markets and assets. On its recent earnings call, the company emphasized active efforts to better balance supply and demand across its manufacturing network, particularly outside North America.

International operations continue to face a challenging backdrop. In Europe, the company has pointed to softer restaurant traffic and pricing pressure following a strong potato crop, alongside the effects of added industry capacity. The temporary curtailment of a Netherlands production line aligns with previously stated plans to address underutilization and manage inventories while maintaining service levels.

LW Balances Near-Term Pressures and Long-Term Returns

The restructuring comes as this Zacks Rank #5 (Strong Sell) company navigates a mixed operating backdrop. Volumes have been rising, supported by customer wins and share gains, but pricing and mix pressures—particularly internationally continue to weigh on Lamb Weston’s profitability. Management has been focused on improving manufacturing efficiency, procurement and overhead, while remaining flexible in a volatile demand environment.

Conclusion

The announced plant closure and capacity curtailment highlight Lamb Weston’s continued focus on execution and cost control amid uneven international conditions. By streamlining its manufacturing footprint and investing in newer assets, the company is seeking to improve efficiency while positioning its global network to support sustainable growth over the long term. 

Shares of LW have tumbled 19.6% in the past six months compared with the industry’s decline of 19.2%.

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This article originally published on Zacks Investment Research (zacks.com).

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