Holding onto a noodle plant is proving to be slippery business for Mossbank, Sask.
Mark Goldman, president of Encore Gourmet Food Corp. of Montreal, which owns the plant, said the rural Saskatchewan factory is not viable without government incentives to stay there.
And so far, he said, his company isn’t getting much co-operation from that sector, citing a general lack of support for manufacturing in Saskatchewan when compared with provinces such as Quebec.
Goldman said proposed expansion plans for the Mossbank plant have been shelved.
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“Nothing is changing because we haven’t been motivated to do anything by the government,” he said.
The company needs a bigger plant to handle demand for its cup-of-soup products, but would prefer to relocate in a major city.
“It’s not practical or feasible to launch an expansion in Mossbank,” he said. “In the long run the plant is not viable where it is.”
A plant built there would have little resale value after the company vacated, he added.
Goldman cited high freight costs to ship supplies in and finished product out. As well, if a motor burns out, the plant has to shut down while the motor is taken to Regina for repairs.
The plant weathered a number of bankruptcies before being taken over in 1999 by Encore, which produces dried soups and spices.
Mossbank mayor Carl Weiss said a plant closure would be devastating for the town of 450. The 25-50 employees live in the town and surrounding regions.
Town council has held meetings to line up funding with various government departments. It has also met with the local MP and MLA. Weiss said the plant needs government support to stay in Mossbank.
“The government has been saying they want to revitalize rural Saskatchewan. This is a golden opportunity to invest.”
Maryellen Carlson, assistant deputy minister with Saskatchewan Agriculture, said there are no funding discussions under way with Encore Foods.
Carlson, who talked with Encore last week, is awaiting further information on the company’s business plan in Western Canada.
“When they do that, the government will discuss more specifically what they want to do and what we want to do,” she said.
