CANADA – Canadian agribusiness company, Richardson International has announced plans to double the processing capacity of its canola crush plant in Yorkton, Saskatchewan amid rising demand for canola products globally.
The company says that construction work at the site will begin immediately with no disruption to current operations and is expected to be completed in early 2024.
In addition to increasing the plant’s annual processing capacity to 2.2 million metric tonnes of seed, the new project also aims to modernise the facility and create further operational efficiencies.
The project follows a recent CAD 120 million (about US$95.3 million) investment at Richardson’s Lethbridge, Alberta crush plant.
When completed, the Yorkton facility will feature a high-speed shipping system with three 9,500-foot loop tracks, as well as three high-speed receiving lanes.
It will enable Richardson better respond to growing global demand for canola oil and canola meal products.
According to Market Data Forecast, the Canola Oil Market is expected to grow at a CAGR of 6% during the forecast period 2020 -2025 and is estimated to reach an extent of US$44.5 million by the end of the assessment period.
The market research firm the growth to increasing demand for canola oil due to its rich nutrient profile which is comprised of a different fatty acid profile with low levels of saturated fatty acids, more monounsaturated fatty acids, and considerable levels of omega-3 and omega-6 fatty acids.
Shifting consumer focus and preference towards healthy diet and low-fat oils and increasing awareness regarding the health benefits of canola oil has particularly made canola a highly sought after product in the global grains market.
“The global outlook for Canadian canola oil is promising, and this latest investment emphasises our ongoing commitment to best-in-class facilities,” said Darrell Sobkow, senior vice-president, processing, food and ingredients at Richardson.
“Yorkton lies right in the heart of canola country and we are focused on providing our producer customers with increasingly efficient means for meeting the needs of a growing global consumptive market.”
Richardson says that there will be ‘significant’ opportunities for employment within the local area during the construction phase, and upon completion, it expects to add full-time positions to the plant.
In early march, 2021, Richardson announced plans to modernize its facility at Swan River, Manitoba, Canada.
The modernization project involves building a new high throughput grain elevator to replace the existing wood crib workhouse at the site.
Additionally, the new construction project will include a high-throughput elevator with 36,600 tonnes of storage capacity, capable of loading 150 cars through a loop track design.
The site will also feature high-speed receiving and loadout, a modern and efficient grain cleaning system, and a new 4,600-square-foot office.
Just like in the Yorktown facility, the Swan River facility will be fully operational during the entire construction period which is anticipated to end in August 2022.
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