Dreyfus/Mitsui crush plant still on schedule

(Resource News International) — The construction of an 850,000-tonne-per-year canola processor by Louis Dreyfus Canada and Mitsui Canada is on target for its Sept. 1, 2009 startup, joint venture LDM Foods confirmed.

The facility, once completed, will produce roughly 500,000 tonnes of meal and 350,000 tonnes of canola oil per year.

“There is still some construction ongoing and once that is complete the process of commissioning the facility will begin,” said Brent German, the plant manager for LDM Foods.

The plant, located in the heart of the canola growing region near Yorkton, Sask., is expected to procure the majority of its canola directly from producers in the area.

The site is served by both Canadian National (CN) and Canadian Pacific (CPR) railways and can service export demand through Vancouver and all U.S. domestic demand.

Construction of the US$120 million facility began on Sept. 7, 2006. The Canadian wing of Japanese trading firm Mitsui and Co. came on board as a 40 per cent partner to Dreyfus’ 60 per cent, starting in December 2007.

German said production from the plant will be mostly for the food market.

The plant has also started accepting production contracts with producers, he said.

Richardson Oilseed Processing, the canola crushing arm of Winnipeg-based Richardson International, also has a C$100 million crush plant planned for the Yorkton area, where it expects to complete construction by the second quarter of 2010.

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