A Saskatchewan noodle plant that has had a series of owners and long
periods of inactivity is finally running at full capacity yet its
future has never looked gloomier.
The oriental noodle factory was built in Mossbank in 1980 with help
from government grants and local investors.
The venture flopped three years later. Since then, a parade of owners
has had trouble making it work.
The latest is Encore Gourmet Food Corp., a Montreal company that
Read Also
First annual Ag in Motion Junior Cattle Show kicks off with a bang
Ag in Motion 2025 had its first annual junior cattle show on July 15. The show hosted more than 20…
manufactures instant noodles, spices, soups and sauces that are sold in
more than 75,000 retail outlets across North America.
The factory has been running full bore with double shifts since Encore
bought it 2 1/2 years ago. It employs more than 30 people.
But it produces only 4,000 to 5,000 cases of product a day, a far cry
from the 35,000 to 40,000 cases the company says it needs.
The 10,000 sq. foot factory makes instant ramen noodles – the kind you
pour hot water on and eat. It is a bagged product that complements the
noodle cups and bowls produced at Encore’s 425,000 sq. foot “mega
plant” in Montreal.
Retailers who buy the product want all three types of noodles, which
means Encore has to transport the cups and bowls from Montreal to
Mossbank, collect the bagged noodles, and continue into the United
States and Western Canada.
“The shipping is killing us,” said Encore vice-president Manouch
Ilkhani.
Encore’s solution is to build a $15 million 150,000 sq. foot facility
in Western Canada that will produce the company’s entire product line
and employ up to 250 people.
Ilkhani said Encore would be happy to build the new facility in
Mossbank, but the resale value of such a big building in such a small
town would be next to nothing and banks aren’t willing to fund a
venture where their equity is worthless.
“The value is zero the day you build it. That’s the problem – it has no
resale value.”
Encore said it has met with Saskatchewan government officials to
request help with the $5 million needed to construct the building.
Ilkhani said if the government doesn’t help, Encore will pull the plug
on the existing Mossbank factory, remove the equipment and leave behind
an empty building.
“But so far nobody has really said anything, so there is a very good
chance we’ll move the facility out of there entirely and go to another
province,” said Ilkhani.
“If you’re in Alberta or B.C. or Saskatchewan, what the heck do I care?
Whoever is willing to give us something, that’s where we go.”
Those kind of statements scare Mossbank deputy mayor Gregg Nagel. The
noodle plant is the town’s second largest employer.
“We definitely want to keep it and it’s very valuable to us,” Nagel
said.
There wouldn’t be enough people in Mossbank to staff the new plant if
it was built there, so the facility would also benefit surrounding
communities such as Assiniboia, Avonlea and Gravelbourg.
Nagel said the provincial government must do what it can to keep the
company in Mossbank. He said politicians are constantly stressing the
importance of value-added projects to rural people.
“That seems to be a lot of rhetoric. Here’s an opportunity to put your
money where your mouth is.”
Maryellen Carlson, acting assistant deputy minister with Saskatchewan
Agriculture, said the government is in preliminary discussions with
Encore, but the Quebec company hasn’t asked the province for a specific
commitment.
“At this stage we really don’t know what the bucks are,” Carlson said.
She said the magnitude and details of the proposed $15 million project
have not been outlined by Encore, but said conceptually it sounds like
the type of plant that would be a “good contributor to a diverse
economy” in the province.
“Clearly we’re interested in Encore building a plant in Saskatchewan.”
A decision to invest will be based on a business case and not where the
plant is located in the province, Carlson said.
Ilkhani said a lack of Saskatchewan government funding would likely
send the new plant to a city like Edmonton or Calgary where financiers
would be more comfortable using the building as equity on a loan. If
that happens, the Mossbank factory would be shut down in a hurry.
“We’ll be out of there by the end of summer,” he said.
