MOSES LAKE - Simplot's Moses Lake and Othello plants are remaining open after the company recently announced plans to close its Idaho plants in Nampa and Aberdeen.

In Idaho, approximately 800 people are to lose their jobs during the next two to three years, according to a company statement.

"We struggled with this very difficult decision and we know the closures will have an impact on many of our employees and their families," stated company president and CEO Bill Whitacre.

The demand for potatoes is "one of a number of reasons why the company needs to be more efficient and plans to build a new state-of-the art plant," according to Simplot spokesperson David Cuoio, on Tuesday.

The new, 38,000 square-foot plant is expected to be done by spring 2014. It will be built at the site of the company's existing Caldwell plant and require about 250 employees.

The company currently produces French fries and other frozen potato products at its Idaho plants.

The Moses Lake plant processes a variety of products, including Tater Gems, hashbrowns, dehydrated potato granules, as well as shoestring, thin cut and regular French fries, according to Cuoio. The products are sold to customers throughout the U.S. and internationally.

In Othello, the facility produces a full line of traditional French fries, including shoestrings, thin cuts, regulars and wedges. Tater Gems and hashbrown patties are produced in Othello too.

The Othello plant serves regional and national quick-service restaurants and retail and full-line distributors, Cuoio stated.

"Competition in the food industry has become challenging with profit margins shrinking and costs continuing to rise," stated Whitacre. "These factors and other considerations have made it important to the future well-being of our food business that we build this new plant."

Mark McKellar, Simplot Food Group president, explained the new plant's construction would cost about as much as renovating the three existing plants in Idaho.

The company declined to release the cost of the new plant.

McKellar called it "the largest single investment the company has ever made in Idaho."