Another major grain industry player announced last week it will build a high volume grain elevator in southwestern Manitoba.
Louis Dreyfus Canada Ltd. will build a 20,000-tonne elevator at Virden, Man., joining a sea of other new facilities going up in nearby Brandon, Boissevain, Souris and Killarney.
The company will also build a similar facility at Rathwell, Man., in the Portage-Carman area.
Brant Randles, vice-president and general manager of Louis Dreyfus Canada, said the company wants to have a presence in southern Manitoba.
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“We felt that the representation in those areas was lacking,” he said, explaining the selection of Virden and Rathwell. He said the sites have good road access and are close to American markets.
Randles acknowledged the competition around Brandon will be stiff.
“We feel the site can cope with another major competitor. We welcome the competition, and ultimately, the farmers are going to benefit from the increased competition in the region.”
He said the company will concentrate on serving local grain handling needs.
“We will have a small number of elevators and will be able to focus all our resources on managing those few elevators well.”
The company recently announced it will build an elevator at Tisdale, Sask. It also leases an elevator at Wilson Siding, Alta.
Randles said the company will be adding more elevators to the network in the coming year.
The Virden and Rathwell facilities will be able to hold 20,000 tonnes of grain, clean grain to export standards and load 56 cars in 10 hours.
The company wants to complete the elevators by Sept. 1, 1998, and double capacity in coming years. It may also sell condominium storage to farmers.
The company’s Canadian office has been based in Winnipeg, but will move to Calgary on June 1.
Randles said the move is prompted by a “more friendly” business and tax environment in Alberta.
