For the past few years, Saskatchewan Wheat Pool announcements have tended toward downsizing, divestitures and recapitalization.
Last week, the Regina-based grain handler announced a capital expansion, one of the first since it completed 22 inland terminals under Project Horizon in 2001.
Chief executive officer Mayo Schmidt told shareholders attending the Dec. 13 annual meeting that Can-Oat Milling Inc. would begin construction in March on a $12 million expansion at its Portage la Prairie, Man., plant.
He said the plant is operating 24 hours a day, seven days a week and has to expand to meet increasing demand.
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The addition will include primary processing capacity, flaking capacity and a high-speed bagging line.
The plant last expanded in 2002.
“Can-Oat will process an additional 50,000 metric tonnes of oats, and, as a result, bring its total milling capacity to over 340,000 metric tonnes per year,” Schmidt said.
In addition, Can-Oat will invest $1.7 million on biomass fired boiler technology. The company will be able to burn oat hulls for its process steam needs and reduce natural gas use by 60 percent.
Those savings are expected to come on stream by the end of 2006.
Can-Oat is the largest industrial oat processor in the world and a wholly owned subsidiary of the pool. At its facilities in Portage and Martensville, Sask., it produces primary and finished food ingredients including quick cooking oats, oat bran, oat flour and steelcut oat groats.
Schmidt said the announcements fit with two of the pool’s three main priorities for fiscal 2006: implement strategies that promote additional efficiencies within its own operations, explore opportunities to expand its earnings base and work with industry partners to address overall efficiencies and excess capacity.
