Canada’s second largest grain company is undertaking a $12 million expansion of four of its business outlets.
Richardson International Ltd. is doubling its grain storage and rail car capacity in Brandon and Swift Current, Sask., upgrading rail car capacity in Crooked River, Sask., and expanding its fertilizer storage in Whitewood, Sask.
“This new project is the latest in a series of significant investments we have made to expand and improve our operations from grain sourcing through to canola oil processing,” said Curt Vossen, president of Richardson.
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That expansion was kick started in May 2007 when Richardson agreed to abandon its pursuit of Agricore United in exchange for the right to buy 15 elevators and nine supply centres from Saskatchewan Wheat Pool in addition to receiving a $35 million termination fee. The deal immediately expanded Richardson’s handling capacity by 50 percent.
The following year the company announced it would spend $75 million upgrading its assets, starting with a $40 million project to expand 16 facilities in Alberta, Saskatchewan, Manitoba and Ontario. That project is now complete.
The latest expansion will result in three more facilities capable of handling 100-car trains, bringing the company total to 30. Swift Current and Brandon will be able to accommodate 112-car unit trains and Crooked River a 104-car unit.
Work at all four facilities is expected to be complete by late fall. The company says it will be better able to meet the needs of customers in those locations.
“It solidifies Richardson’s ongoing commitment to develop the most efficient pipeline of grain movement in Western Canada,” said Vossen.
Richardson operates 68 elevators and standalone crop input centres. Before its 2007 acquisitions, the company controlled 13 to 15 percent of the grain handling market.
Today it handles 25 to 27 percent of Canada’s grain compared to 44 percent for Viterra.
And the expansion phase isn’t over, said Jean-Marc Ruest, the company’s vice-president of corporate affairs.
“There’s more stuff coming. We expect to be able to announce the particulars of those later in 2009 or early 2010.”
The company will also keep an eye out for more acquisitions to fill gaps in its existing elevator network.
“We’re very optimistic about the industry. We like what we see. We like where we’re at. If we see opportunities to make us even better, we’ll pursue them for sure,” said Ruest.
