Story Posted: June 02, 2008

Canola plant to be built in Yorkton, construction to begin in 2010

Copyright 2008 The Leader-Post. Used with permission.

REGINA (SNN) -- A major canola processing plant will be built in Yorkton, James Richardson International Ltd. announced Friday. Construction of the plant, which will cost in excess of $100 million, will begin immediately. The plant is expected to go into production in 2010.

Plans for the plant were announced in September 2006 but concerns about rising construction costs had caused uncertainty about whether the project would proceed.

Jean-Marc Ruest, the vice-president of corporate affairs with JRI, said the review of costs has been completed and the company is now able to confirm the initial announcement about the plant. While the costs are expected to be higher than the original estimate of $100 million to $110 million, Ruest said JRI is comfortable the project still makes financial sense.

Construction will begin immediately, Ruest said, adding construction equipment and workers were ready to get going Friday.

About 65 to 70 people will be employed at the plant once it opens, Ruest said. Many of those jobs will be highly skilled, highly paid technical and professional jobs, Ruest said.

An estimated 200 "person years" of employment will be created during the construction stage, Ruest said.

Yorkton Mayor Chris Wyatt welcomed the news, which he said will further consolidate the city's position as a centre for agricultural-related industries.

"This is going to be a boon for Yorkton," Wyatt said Friday.

In addition to the direct jobs in building and operating the canola plant, there will be many other spinoff jobs in transportation and other industries, Wyatt said.

And those new workers will need someplace to live, which should stimulate the city's housing industry, Wyatt said.

The announcement by JRI on Friday "ends a lot of speculation and rumours in the city" that the plant was not going to be built, Wyatt said.

But Wyatt said he was always confident that JRI would follow through on its announced plans to build the canola plant.

Curt Vossen, the president of JRI, said construction of the Yorkton plant will help the company meet a growing demand for product in recent years.

"We have witnessed a significant increase in the demand for vegetable oil generally and canola oil specifically on a global basis for food and biofuel," Vossen said in a news release.

"The construction of the Yorkton processing plant will enable us to better meet the existing needs of our world-wide customer base."

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