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With a Billion-Dollar Investment in Minas Gerais, McCain Expands Its Presence in Brazil and Prepares a New Production Line in Araxá That Promises to Transform the National Frozen Foods Supply Chain.
McCain will expand the Araxá factory in Alto Paranaíba with an investment of R$ 1.8 billion.
The project includes a new line of French fries and another of pre-formed products, with operations expected to start in the second half of 2027.
According to the company, this is the largest investment by McCain in Brazil, reinforcing Minas Gerais’ role in the national frozen foods supply chain.
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Expansion in Minas and Focus on Production Capacity
Inaugurated in August 2022, the Araxá plant was McCain’s first factory in the country.
The expansion is expected to meet the increased demand for pre-fried potatoes and breaded products.
The pre-formed line will be incorporated for the first time at the plant, without altering the existing activities in potato production.
According to the company, the new phase aims to increase processing capacity and improve operational efficiency.
The project anticipates integration between logistics, storage, and industrial automation.
The expectation is that the expanded structure will help reduce delivery times and increase supply to the domestic market.
Jobs and Strengthening the Agricultural Supply Chain
The investment is expected to impact the local economy.
Estimates released by municipal authorities and industry entities point to the creation of approximately 350 direct jobs when the new lines are operational, in addition to temporary opportunities during construction.
In rural areas, McCain stated that it intends to expand contracts with partner producers to ensure the supply of raw materials.
According to the company, this measure provides purchasing predictability and encourages the use of agricultural technologies to increase productivity and the quality of cultivated potatoes.
Acquisitions and Market Strategy
The expansion occurs after the completion of the acquisition of Forno de Minas in 2023, a traditional manufacturer of cheese breads and frozen products.
The deal expanded McCain’s local portfolio and its distribution network, particularly in retail.
According to food industry analysts, this move is part of a diversification strategy aimed at reducing dependence on a single type of product and balancing the portfolio with new categories of frozen goods.
Brazil, according to experts, has been standing out as a growing market for this segment, driven by increased consumption away from home and greater demand for convenience.
Why Araxá Became a Strategic Hub
The choice of Araxá is related, according to McCain, to its geographical location and regional infrastructure.
The municipality is close to potato-producing areas and highways that connect Triângulo Mineiro and the Southeast, facilitating the transport of raw materials and the distribution of production to major consumption centers like Belo Horizonte, São Paulo, and Goiânia.
The factory, inaugurated three years ago, received initial investments of about US$ 150 million and was designed for future expansions.
This allows, according to the company, the installation of new lines with shorter construction times and the utilization of existing structures, such as refrigeration and energy systems.
Timeline and Start of Operations
McCain’s timeline anticipates the start of operations for the new line in the second half of 2027.
The expansion phase includes stages such as executive project, equipment acquisition, and industrial installation.
The new line of French fries will increase cutting and freezing volumes, while the pre-formed line will allow the local production of items such as breaded products and nuggets, categories that have seen significant growth in the food service sector.
According to experts in the food industry, the nationalization of production reduces dependence on imports and may help <strong mitigate currency fluctuations that affect the final cost of products.
McCain also states that the new phase will be implemented with a focus on energy efficiency and water reuse, aligned with the company’s global sustainability goals.
Competitive Impact and Product Offering
The expansion is expected to increase the availability of potatoes and derivatives in the Brazilian market.
According to analysts, the increase in production capacity could intensify competition among manufacturers and fast-food chains, driving logistical and pricing adjustments.
For consumers, this change may mean more frozen product options on store shelves, with variations in cutting and format.
The industrial sector, in turn, assesses that the presence of an expanded plant tends to attract suppliers of inputs, packaging, and refrigerated transport services to the region, strengthening the mining hub.
What to Expect in the Coming Years
The execution of the project will follow common stages in industrial ventures, such as licensing, civil works, and operational testing.
Industry sources evaluate that factors such as raw material availability, energy costs, and logistics will be decisive for the implementation pace.
For McCain, the investment reinforces its long-term commitment to the country and enhances Brazil’s role within its global strategy.
With the new expansion cycle, Minas Gerais is consolidating as one of the main centers for potato and derivative production in Latin America.
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