Cargill to Double Canola Processing Capacity in Saskatchewan 

29/08/07 Cargill has confirmed plans to build a second canola processing plant adjacent to its existing operation in Clavet, Saskatchewan. The investment will double oilseed processing capacity to 1.5 million tonnes annually—positioning Canada as a world leader in supplying a growing need for high quality vegetable oil.

“This investment reinforces our longstanding commitment to agriculture in Saskatchewan,” said Ken Sauser, plant superintendent at Cargill in Clavet. “Saskatchewan has over half of Western Canada’s canola acres, making Clavet an ideal location for the new facility.”

Groundbreaking for the new facility will take place in the coming months with construction completed and production started by November 2008. The new operation will employ about 25 people. Combined with the recent opening of a crop research facility, Cargill’s total employment at Clavet will reach 150 full-time equivalent employees.

“We are entering a period of rapid global growth in oilseeds and Canadian canola will play a key role in that growth” noted Ken Stone, Cargill’s Canadian Oilseed Manager. “As our North American and world customer base continues to grow for generic and specialty canola oils, the canola producers of Western Canada become an even more critical partner to us in serving our valued customers.”

Cargill has a number of long-term agreements to supply major food customers with canola oil, including specialty varieties valued for being low in saturated fat and having zero trans fat. The added crush capacity is supported by strong demand for hi oleic canola oil in addition to growing demand for generic canola oils.

“Cargill prides itself on being a solutions provider, in particular in the area of eliminating trans-fats through high oleic varieties,” said Cargill Limited President Len Penner. “We are fortunate to have partnered with a number of valued customers dedicated to satisfying consumer needs through healthier oils.”

In addition to the plant, the construction project will include some improvements to local roads and an upgrade to the joint Cargill/Municipal Government wastewater treatment plant.