Lamb Weston sees about $500M spent over next five years on wastewater

According to a transcript of the Lamb Weston earnings call, company executives stated: “Our manufacturing processes involve water intake and waste handling and disposal activities, which are subject to a variety of environmental laws and regulations, along with the requirements of permits issued by governmental authorities. To comply with these regulations, we expect the laws in the states in which we operate will require us to spend approximately $500 million over the next five years. The estimate to comply may vary based on changes in regulation and other factors. We’re evaluating options to lessen these expenditures, including the potential for government incentives.” Responding to an analyst follow-up question, the company added: “As it relates to the $500 million, again, this is related to primarily wastewater capital investments that will be needed at our manufacturing plants in order to continue to run them at current capacity levels. So, as we look at the timing of that, that’s going to vary depending on different regulatory regulations. And we’ll provide more of an update on that as we give our specific guidance. We wanted to, though, frame it up in terms of a large capital expenditure over the next five years. And we will certainly be looking to other regulatory bodies, whether it be state, federal, etcetera, in terms of whether or not there’s opportunities for any government incentives to lessen that. But early in that process and we’ll provide updates as we move throughout.”