Lamb Weston will close its manufacturing site in Broekhuizenvorst in the Netherlands, the US frozen potato-products supplier announced 4 June. The move is part of the company's effort to "align" its international production network with "evolving market conditions", according to a company statement.
The closure will affect around 110 employees. The company said it will begin formal consultation with the Works Council in line with Dutch legal requirements, but has not provided a date for when operations will cease.
Lamb Weston expects the planned closure to generate total pre-tax charges of about $80m to $110m, recorded in its financial year ending 30 May 2027. At least 20% of those charges will involve future cash outflows.
Chief supply chain officer Sylvia Wilks said the step is necessary to "position us to improve our operational efficiency and better align our manufacturing footprint with customer needs."
The Netherlands closure is part of a broader restructuring. In January, Lamb Weston announced it would shut its Munro facility in Argentina, a move affecting 100 employees. Both closures fall under the company's "Focus to Win" strategy announced last year by president and CEO Mike Smith, who was promoted from COO in January 2025.
That strategy includes zero-based budgeting, assessment of non-core assets, and changes to commercial go-to-market approach. Smith also launched a $200m annualised cost-savings programme in July.
The restructuring moves come amid shareholder pressure. Activist investors Jana Partners and Continental Grain Co. pushed for business turnaround measures and board changes. In April, activist investor Starboard Value, which disclosed a "significant" shareholding in March, called on the company to restore market confidence and set out a route to sustainable profit growth. Starboard is targeting 25% adjusted EBITDA margins by fiscal 2029 through a "balanced mix of profitable revenue growth and cost reductions" and called for a strategic review of overseas assets, including possible sale of select APAC operations.
Lamb Weston reported net sales of $1.56bn for its third quarter of fiscal 2026, up from $1.52bn a year earlier. Net income fell to $54m from $146m for the period ended 22 February, while adjusted EBITDA dropped $101.3m year on year to $271.7m.