Viterra announces canola crush facility in Regina

Viterra has announced plans to build a canola crushing facility in Regina on Monday.

The agricultural company says the project is currently in the feasibility stage and finalizing the plant's capabilities and design. It says the plant targetisto have a crush capacity of 2.5 million tonnes.

"It's a tremendous economic opportunity for the city and province and a long-term opportunity for our western Canadian farmers to have a very significant outlet," Kyle Jeworski, CEO of Viterra for North America, said in an interview.

The announcement comes after months of speculation around an unnamed company behind the $4-million land deal approved unanimously by Regina's city council. Jeworskiconfirmed to CBC Saskatchewan Viterrais the company behind the deal.

Jeworski saidViterra has been working with the city extensively to find the right plot of land, and it boiled down to road and rail access. Jeworski said the bypass was a specific reason they decided on that land as well.

Jeworski said the plant will create 1,000 construction jobs and approximately 100 full-time jobs when it's complete. He said Viterra isn't disclosing the cost of the facility at this time.

The announcement also comes within a week of Cargill announcing it intends to build a canola crush facility in Regina as well. That plant is not part of the land deal. Both the Cargill and Viterra plants are intended to be operational in 2024.

When asked about Cargill's similar plant, Jeworski said this project has been worked on for a number of years and they intend for it to be the world's largest.

Viterra said canola oilseed crush is expected to benefitlong-term froma growing demand for canola oil in food, as well as an increased need for animal feed.

It said the plant will play a key role in supplying feedstock required for renewable fuel production, in line with the federal government's Clean Fuel Standard,which aims to reduce Canada's greenhouse gas emissions.

Viterra said completion of the project is dependent on successful negotiation and finalization of various permits, licensing and agreements with third parties.