Manitoba to South Dakota | After a fire destroyed the plant in Angusville, Man., the company decided to rebuild in Sioux Falls
Glanbia Nutritionals Ingredient Technologies, an Irish company specializing in food ingredients, is planning to build a flax processing plant in Sioux Falls, South Dakota.
The company’s decision, ann-ounced Nov. 27, is a blow to the economy of western Manitoba because Glanbia operated a flax processing plant in Angusville until a fire gutted the facility in March.
The residents of Angusville, located near Russell, Man., were hoping Glanbia would rebuild the plant, which employed 60 people and was a major player in the regional economy.
“After careful consideration of all options, including the possibility of rebuilding in Manitoba, it became apparent that locating our cereal ingredient facility in Sioux Falls was the best decision for our customers, suppliers and company,” Glanbia president Jerry O’Dea said in a statement.
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“After years in Angusville, this was a very difficult decision, given our longstanding relationship with the community.”
Glanbia’s new plant in Sioux Falls is expected to employ 38 people and begin operations in July.
Employees at the former Angusville plant will be offered severance packages or the opportunity to relocate.
While Glanbia’s decision will affect western Manitoba, it is also a good news story for Canada’s flax industry, said Flax Council of Canada president William Hill.
“From a Canadian flax perspective, we’re pleased that Glanbia will continue to be in the business and is committed to flax,” he said.
“That’s a good thing for the Canadian industry because that’s more final demand (for flax).”
Glanbia sold the flax from Angusville into the food ingredient market for baked goods, cereals, supplements and beverages.
Eric Borchardt, Glanbia’s director of marketing, said transportation played a role in the company’s decision to build in Sioux Falls.
“The convenience of the highway and rail systems was very appealing to us,” he said from Fitchburg, Wisconsin, Glanbia’s headquarters in North America.
“This facility will be a lot closer to some of our customers … (but) our intention is to maintain relationships with our farmers and continue to source flax from Canadian (producers).”
Manitoba Flax Growers Association president Eric Fridfinnson said it would have been preferable if Glanbia rebuilt its plant in Angusville, but it is a positive development when looking at the big picture.
Glanbia’s plant in Sioux Falls will buy only a small portion of Canada’s flax crop, but it’s an important portion because it represents the high end food and nutrition market, said Fridfinnson, who farms near Arborg, Man.
“They’re a relative small player as far as tonnage,” he said.
“(But) they’re the people who are actually developing new technology and coming up with new products. So it brings a lot of excitement to the business.”
