Lyckeby Breaks Ground on New Tank Facility in One of the Largest Investments in Its History
Swedish starch producer Lyckeby has officially begun construction of a new tank facility designed to increase its production capacity for modified potato starch, the company announced on October 8, 2026. The project represents one of the largest investments in the company's history and marks a significant step in its long-term growth strategy.
The groundbreaking ceremony brought together Group CEO Hans Holmstedt, Chairman of the Board Nicklas Göransson and representatives of construction partner CONSYD AB, formally launching the project. Construction and commissioning are expected to progress through 2028.
Lyckeby manufactures specialty potato starches and fibres for the food and paper industries — a niche where modified starches command premium positions as thickeners, stabilisers and texture agents in everything from convenience foods to industrial applications. By expanding capacity, the company says it aims to reinforce its position in the markets it serves and to meet future demand.
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The investment lands at an interesting moment for the European potato-processing complex. While the region's French fry sector is working through overcapacity and plant closures — Lamb Weston ended production at its Broekhuizenvorst facility in the Netherlands just this quarter — the specialty starch segment continues to attract capital. The divergence reflects different demand fundamentals: modified starches serve food-industry functionality markets with relatively stable, specification-driven demand, whereas fry capacity is hostage to foodservice traffic and raw-material costs.
For Swedish and Baltic-region potato growers, the expansion is also a demand signal. Starch potatoes are a distinct cultivation segment with contract structures of their own, and higher processing capacity typically translates into expanded contract acreage in the factory's catchment area. Lyckeby has not disclosed the investment amount or the capacity figure for the new facility; both need clarification. What the company has made clear is the timeline — construction now, commissioning in 2028 — and the strategic intent: a foundation, in its own words, for future growth and development in the modified potato starch market.
