Clarebout Potatoes intends to completely close its Mouscron 1 plant in Belgium to reduce industrial capacity that has exceeded expected demand and to contain costs that, according to the company, are compromising the competitiveness of its production operations.
The project, which is not yet a final decision and will need to be discussed with the trade unions, could affect up to 392 employees, whose jobs are now at risk.
The frozen potato producer cited the ongoing difficulties facing the sector as the reason for its decision, where overcapacity, rising costs, and growing competitive pressure are forcing companies to rethink their industrial structures.
According to Clarebout Potatoes, the group's overall production capacity currently exceeds expected demand by approximately 14-20 percent, forcing the company to incur fixed costs related to volumes that the market cannot fully absorb.
In this context, the Mouscron 1 plant was identified as the first site to intervene on because it represents the group's smallest production unit and is equipped with older systems and equipment than those present in the other factories.
These characteristics result in higher costs per ton and less favorable levels of operational efficiency, making the plant more exposed to the consequences of slowing demand and intensifying competition.
By closing the site, Clarebout Potatoes aims to adapt its production capacity to actual market needs, concentrating activities in the plants deemed most efficient and reducing the burden of fixed costs associated with underutilized facilities.
The company also stated that it intends to continue investing in the group's other production sites, with projects aimed at increasing line efficiency, strengthening industrial competitiveness, and further improving product quality.
Before making a final decision, Clarebout will initiate the procedure required by Belgian law, during which worker representatives will be able to evaluate the plan, request clarifications, and propose possible alternatives to the cessation of activities.
Only at the end of this consultation phase will the company decide whether to proceed with the closure. Should the project be confirmed, production of Mouscron 1 would be gradually halted according to methods and timeframes yet to be defined.
The dispute is particularly significant for the area, both due to the number of employees potentially involved and the potential repercussions on related businesses connected to the plant's production and logistics activities.
Clarebout Potatoes, together with its subsidiaries, employs a total of approximately 3.000 people in Belgium and France, where it operates several plants specializing in potato processing and the production of frozen products.
Since 2025, the company has been part of the US-based Simplot Company, an international group active in the food and agricultural sectors, which acquired Clarebout as part of its expansion strategy in the European market.
The Mouscron plan highlights the challenges facing the European processed potato sector, which faces challenges such as industrial capacity exceeding demand, rising operating costs, and increasingly intense competition among major producers.
The outcome of the discussions with the trade unions will therefore be decisive in establishing whether the plant will actually be closed or whether alternative solutions can emerge that are capable of safeguarding, at least in part, production and the 392 jobs currently under threat.
