Saskatchewan is the leading contender for a fat substitute plant that could eventually require up to 10 percent of the province’s canola and rapeseed crops.
Viritech Inc., a spin-off business of a large American chemical company, is scouting locations for a plant to make esterified propoxylated glycerin.
The plant will produce a fat substitute similar to Olestra for human consumption and for pet foods, as well as a variety of products suitable for cosmetic, medical and industrial applications.
Initially Viritech would be interested only in “renting out” space from existing crushers and refiners to produce its line of products.
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“We are hoping that if our capitalization comes through that we will start operations sometime this year,” said Viritech director Harry Mazurek.
The proposed plant would be a multi-million dollar facility capable of producing 45 million kilograms of product a year. It would employ about 100 people.
The plant would be a long-term project but Viritech would have a “sizable” presence in the province long before the factory is built. Staff will co-ordinate the procurement of raw materials and the production of Viritech’s line using existing facilities in the province.
Mazurek said Saskatchewan is the leading contender for the operation due to its ability to produce large amounts of canola and high erucic rapeseed – the two essential ingredients for most of Viritech’s products.
“From an economic point of view it makes a lot more sense to put the (product) together where the raw materials are,” said Mazurek.
He said Saskatchewan is the North American capital for canola production and the “exclusive” capital for the production of high erucic rapeseed.
Viritech’s project hinges on financing, which Mazurek anticipates will be in place within the next three months. He said the company will require between one and 10 percent of the province’s canola and high erucic rapeseed crops depending on the demand for its reduced-calorie fat substitute.
“Anytime where you can pinpoint one business that’s going to take up several percent (of a crop), it’s significant,” said Mazurek.
The company will rely on grain companies to obtain its supply of oilseeds.
“Our expertise is not to go talk to the farmer and negotiate the contracts for these materials. Our preference is to leave that to the experts.”
