A $15 million expansion project to Richardson International’s canola packaging plant in Lethbridge is scheduled to start this spring and be completed by February 2012.
The project will add 33,000 sq. feet of warehouse space and canola oil storage. As well, new equipment will automate some of the oil receiving and blending operations. An additional $1.5 million will be spent on a lab and pilot plant at the facility.
John Haen, vice-president of Richardson Nutrition, said the company has been studying the project for the past year and made the announcement Jan. 26.
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“We are trying to become one of the most efficient plants in North America,” he said. “Our job is to add value to oil after it is crushed.”
The expansion will take place on the current site without need for additional land purchase. The plant was storing oil in rail tanker cars, but the planned interior tank farm will eliminate that need.
As a result, railway track area will be used for the larger building.
Haen said the expansion plan reflects growing customer demand for healthier food and recent legislation governing the reduction of trans fats.
“We are developing products that are trans fat free and functionally lower in saturated fat,” he said.
A company news release said recent work has focused on new canola-based oil, non-hydrogenated margarine and shortening products for the food processing, bakery, food service and retail markets.
Haen said the pilot plant and lab will allow the Lethbridge plant to test small batches of products without affecting regular operations.
Plans also involve environmental upgrades including reduced use of cardboard in packaging.
Richardson bought the former Canbra plant in Lethbridge 11 years ago. It operates another canola oil plant in Yorkton, Sask.
