Richardson International Limited is announcing a significant investment in theircanola crush plant in Yorkton, Saskatchewan.
In addition to doubling its processing capacity to 2.2 million metric tonnes,the project will optimize operational efficiencies and modernize the facility to meet an ever-growing global demand for canola oil and canola meal products.
鈥淚t鈥檚 exciting news. I can鈥檛 tell you how psyched we are,鈥� said Yorkton Mayor Mitch Hippsley when contacted Monday. 鈥淚t will be the largest canola crushing facility in North America right here in our home town.鈥�
Hippsley said the expansion is important not just for its direct impact, but because it can have something of a ripple effect in the city.
鈥淭he impact will be all kinds of positivity and hope for the city,鈥� he said, adding if other businesses, especially those tied to agriculture, see Richardson willing to make a major investment in Yorkton, they may as well.
鈥淚t helps underline Yorkton as being an agriculture centre,鈥� he said.
SaskCanola鈥檚 Board of Director Chair Bernie McClean said the expansion is extremely positive for the canola sector, and beyond.
鈥淚t鈥檚 only good news for agriculture and the economy as a whole,鈥� he said when contact by Yorkton This Week Monday.聽 鈥淚t has to help the local economy.
鈥淚 look at this as fantastic news.鈥�
McClean said the expansion should also spur canola producers in the Yorkton area to feel confident in investing in the crop to boost production per acre, knowing the market exists locally.
鈥淚t should really encourage producers,鈥� he said.
The Government of Saskatchewan was quick to welcome Richardson International Limited's announcement.
"This is a significant investment in our province that will create local jobs, support economic recovery and help our province continue to grow," Trade and Export Development Minister Jeremy Harrison said in a release Monday.聽 "As the world recovers from the economic impacts of the pandemic, there remains a growing need for the food products Saskatchewan produces, such as canola oil and canola meal, and we appreciate this investment and expansion at Richardson's Yorkton canola crush plant, which will help meet that demand.聽Our government is committed to maintaining a competitive business environment to attract these types of investments, which will benefit all Saskatchewan residents, and we look forward to working with Richardson on this important project."
"Saskatchewan is a leader in agricultural production and we welcome this investment to increase canola crush capacity in the province," Agriculture Minister David Marit said in the same government release.聽 "We know the world wants the high quality products Saskatchewan produces, with canola oil and canola meal our top value-added exports in 2020.聽This expansion of processing capacity will help Saskatchewan meet the goals outlined in our Growth Plan, which includes a target to crush 75 per cent of the canola our province produces here in Saskatchewan.
In the same release Richardson International President and CEO Curt Vossen noted the expansion builds on a base started more than a decade ago.
"We opened the original Yorkton plant in 2010 and at that time, it was by far the largest capital investment Richardson had ever undertaken," he said.聽"Saskatchewan and Manitoba producers have responded effectively, providing growth in canola production over the years - this has given us the confidence to move forward with expansion once again.聽We have appreciated the encouragement and cooperation of the rural municipality of Orkney, the city of Yorkton, and the province of Saskatchewan."
When completed, the Yorkton facility will include a high-speed shipping system with three9,500-foot loop tracks, complementing infrastructure currently in place. It will be served by both major railways and will be dedicated to moving canola crush products at some of the most efficient levels seen in North America.
Additional facility upgrades and improvements will effectively double processingcapacity in excess of 2.2 million metric tonnesof seed. The site will also boast three high-speed receiving lanes, providing producers and trucking partners a fast and effective means for seed delivery.
When contacted Monday, Kelcey Vossen, Communications and Public Relations with Richardson explained the company is 鈥渘ot commenting on the number at this stage,鈥� in terms of the investment cost of the project, adding some details are still 鈥渢o be fleshed out.鈥� She did add the investment 鈥渙bviously will be fairly significant.鈥�
The staffing levels during construction and those at the plant post construction were also not available Monday.
Vossen did note that there will be permanent jobs created by the expansion terming those 鈥渁dditive鈥� and ones which will have 鈥渁 good impact on the economy.鈥�
As a significant supplier to the global canolamarket, Richardson has been focused on improved operational efficiencies,modernization, and automation. With $120 million recentlyinvested in their Lethbridge, Alberta crush plant, this latest investment in Yorkton will provide additional opportunities to producers to market their oilseed crop.
鈥淭he global outlook for Canadian canola oil is promising, and this latest investment emphasizes our ongoing commitment to best in class facilities,鈥� said Darrell Sobkow (Senior Vice-President, Processing, Food, and Ingredients). 鈥淵orkton lies right in the heart of canola country and we are focusedon providing our producercustomerswith increasingly efficient means formeeting the needs of a growingglobal consumptive market.鈥�
Construction will begin immediately with no disruption to current operations and is expected to be completed in early 2024. During the construction phase, there will be significant opportunities for employment within the area and upon completion, the company expects toadd full-time positions to the plant.
鈥淭his state-of-the-artfacility represents a good news story for all industryparticipants 鈥揻or our producer customers and end-use buyers across North America and abroad,鈥� said Keith Belitski (Director, Operations, Yorkton). 鈥淎construction project of this magnitude will be significant, economically, to the province of Saskatchewan, the cityof Yorkton, and surrounding areas.鈥�
About Richardson International
Richardson International Limited is Canada鈥檚 largest agribusiness and is recognized as a global leader in agriculture and food processing. Richardson is a worldwide handler and merchandiser of all major Canadian-grown grains and oilseeds and a vertically-integrated processor and manufacturer of oats and canola-based products. One of Canada鈥檚 Best Managed Companies, Richardson has over 2,900 employees across Canada, the U.S., and the U.K.
