McCain halts plans for billion-euro potato factory in Germany

The Canadian food company McCain has decided to halt its plans for a new frozen french fry factory in Mehrum, located in the Peine district of Lower Saxony, Germany. The project, which was intended to be a billion-euro investment, would have created up to 650 jobs and processed approximately 750,000 tons of potatoes annually.

McCain cited current European market conditions as the primary reason for the decision, specifically noting increased project costs due to inflation, overcapacity in processed potato products, and weakening demand in key markets. The company stated it is not pursuing the investment “in its current form” following a review of economic viability.

The decision is a setback for regional potato farmers who anticipated a major new buyer. The Lower Saxony state government expressed regret over the development, noting that both state and federal authorities had actively supported the project, including mobilizing approximately 50 million euros in federal subsidies and 10 million euros in state funding.