SASKATOON – The world’s largest oilseed processor has announced it will build a $53-million canola crushing plant outside Saskatoon.
Cargill Ltd. will begin construction of the facility at Clavet, 25 kilometres southeast of Saskatoon, this spring to be completed by the harvest season of 1996.
Kerry Hawkins, president of Cargill, said the company chose Clavet, along Highway 16, because of its “access to ample supplies of canola.
“This region will remain the heart of canola country in Western Canada,” said Hawkins.
Saskatchewan grows 45 percent of the canola in Western Canada. While there are already four canola crushing plants in Alberta there is only one other plant in Saskatchewan, at Nipawin. Hawkins said less competition was a consideration when building the facility.
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“We wanted to be where the canola crop was,” said Hawkins at a news conference Monday to announce the site.
There were more than 300 communities vying for the canola crushing plant that will process 2,000 tonnes of canola per day and employ 50 full-time staff at the plant.
The company estimates another 100 trucking jobs and an additional 400 spin-off jobs will be created because of the crushing plant.
The provincial government offered tax concessions to the multi-national company in an effort to entice the project away from Alberta.
Cargill gave up $4.9 million in future investment tax credits in exchange for $3.9 million cash from the province now.
“Without this agreement Cargill would not have been able to select Saskatchewan as the home for the $53-million facility,” Hawkins said.
The government money will be used to buy specialized equipment during construction.
Cargill is also in the process of finalizing a deal with the rail companies to guarantee rail access.
The crushing plant will turn the canola seed into oil for transport to a refinery and canola meal to be used as a livestock supplement.
Within 18 months the company is planning to announce construction of its own canola oil refinery at the site that could add an additional 60 to 75 jobs.
Bill Hetland, president of the Saskatchewan Canola Growers Association, welcomed the announcement.
“This is tremendous news for Saskatchewan and of course especially for canola growers. It means another market outlet for canola growers,” said Hetland.
It’s estimated the plant will increase the Canadian crush by more than 25 percent.
