Kraft Heinz Co. and the Simplot Food Group have signed a long-term agreement in which Simplot will become Ore-Ida’s exclusive manufacturer and supplier.

Kraft Heinz will continue to own the Ore-Ida brand.

Publicly traded Kraft Heinz said in a release the agreement calls for it to transfer ownership of an Ontario, Ore., plant, its primary production facility, to Boise-based Simplot. Simplot will make capital investments needed to meet the increased demand.

Improvements to the plant are slated as part of the agreement.

Details of the agreement were not released.

The handover of the facility, which employs about 600 people, is expected in the second quarter. Privately held Simplot will offer jobs to employees, who will receive pay and benefits comparable to those provided to other similarly situated Simplot employees.

Simplot has potato processing plants in Caldwell, Idaho; Moses Lake, Wash.; Othello, Wash.; and Grand Forks, N.D.

Kraft Heinz said Simplot, as a leader in potato manufacturing and distribution, is expected to grow the Ore-Ida brand by introducing world-class innovation and technology to the business. Simplot also will increase efficiency through vertical integration, including supplying potatoes for the brand starting with the 2023-24 crop season.

Consumer demand for Ore-Ida potato products remains high, “proving there is substantial opportunity to grow the current portfolio of products while also introducing new and exciting foods from the brand,” said Renee Peets, senior vice president of North American procurement at Kraft Heinz. Ore-Ida net sales are about $500 million “and we believe there is still a lot of untapped growth.”

She said the expertise and innovation Simplot will bring to the brand “is unrivaled, and thanks to our strategic supply partnership, we’ll now be able to bring new and expanded offerings from Ore-Ida faster than we ever have before.”

In 1999, a new division of Pittsburgh-based Heinz absorbed the Ore-Ida division headquarters, which was in Boise.

“The Ore-Ida brand is well-known and loved, and we’re thrilled to help ensure the continued success of this iconic family favorite through our Kraft Heinz partnership,” said Mark McKellar, Simplot Food Group president. “With our combined history of making and serving high-quality frozen potato products and our shared dedication to the communities where we operate and the customers we serve, we have a bright future in front of us.”

Kraft Heinz since 2020 has been reworking its strategic focus, growth profile and financial flexibility.