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| www.gov.sk.ca |
| Thursday, July 08, 2010 |
| By: /nipawinjournal.com |
Can Pro Ingredients Ltd's one of a kind canola protein concentrate plant in Arborfield is now fully operational after the recent completion of its new plant.
The company celebrated the commencement of commercial production with a ribbon cutting ceremony on Saturday, June 26. The day's proceedings started at 11 a.m. with a tour of the plant for dignitaries and the media. The grand opening, which was open to the public, took place after lunch.
During his opening address CEO Francis Rodier spoke about the difficulties to bring the project to completion.
"We didn't have a running plant to copy," he said. "Many obstacles had to be overcome since the canola fishmeal plant is the first of its kind in the world."
Can Pro's operations started in April 2007 when it acquired the assets and business of Arborfield Dehy Ltd., which was established in 1970 by a group of local farmers to process alfalfa hay into feed pellets.
Can Pro uses patented technology from Saskatoon based company MCN BioProducts Inc. This second generation of canola technology makes it possible to combine canola fractions with alfalfa streams to manufacture new products for the aquafeeds, animal feeds and biodiesel markets.
MCN founding member Prof. Henry Classen also spoke at the event. He is currently the head of the Department of Animal and Poultry Science at the University of Saskatchewan, where the original research work into canola bioproducts resulted in MCN's establishment.
"It's really a Saskatchewan success story," he said. "It's a privilege for me to see a technology that was developed here actually being implemented here."
He emphasized how MCN's technology is used by Can Pro to produce extremely high quality products.
"Can Pro is way ahead of the game," he said. "There are lots of other people trying to get into that market."
This success does not come cheap. The aggregate value of Can Pro's acquisition, licensing and financing transactions was $18.75 million. An investment of $25 million was required for plant construction. Financing from a syndicate of investors made it possible for Can Pro to move ahead.
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Ulrich Felbermayer represented the Golden Opportunities Fund, one of the key investors, at the opening ceremony. He is also the chairman of Can Pro's board of directors.
"We're happy to be an investor in this company," he said. "We know it's going to do very well, not only for us as an investor but for all employees, for all suppliers."
A number of speakers emphasized the benefits of Can Pro's operation in Arborfield to the local community.
"Without the Can Pro initiative Arborfield would not have such an outstanding anchor industry in our community," Deputy Mayor Kathy Lindsay said.
RM of Arborfield Councillor Al Bronner thanked Can Pro for selecting the town as the home for their new venture.
"Not only will it offer new job opportunities, it will also offer marketing opportunities for our local producers," he said.
Carrot River Valley MLA Fred Bradshaw, who grew up in Arborfield, recalled a time when the plant site was just a swamp.
"To look at it now, to have this great facility here is something," he said. "It puts Arborfield right on the map because this is a world class facility. This is not being done anywhere else in the world."
Prince Albert MP Randy Hoback credited the community for their vision to keep their railway going, because without the railway connection Can Pro's export oriented facility could not be located in Arborfield. He mentioned the contribution of about $7 million in seed money by the federal government in 2007 to convert the research done at the University of Saskatchewan into a viable undertaking through MCN's patented technology.
CEO Francis Rodier asked producers who have any canola to consider Can Pro as their first stop for pricing canola. In the future they will also be purchasing heated canola up to 20 per cent.
The opening ceremony concluded with the official ribbon cutting by Bill Meyer, who was one of the original directors of Arborfield Dehy. Afterwards people had an opportunity to tour the plant.
The company will use about 34,000 tons of canola per year, or approximately 100 tons per day. The plant started up in mid April with test runs that delivered good results and good product, but the wet weather resulted in a shortage of alfalfa to process their canola.
"Hopefully we can run continuously from now on," Rodier said after the opening ceremony.
Can Pro employs 35 people full-time and 14 part-time. They use seven to eight contractors for baling. Most of the employees are former Arborfield Dehy workers.
"We're a fairly large employer in this area," Rodier said.
Market demand for Can Pro's new canola protein concentrate has been very strong. This is due to the interest from shrimp, trout, salmon and piglet feed manufacturers who want to replace the short in supply and far more expensive fish meal in their formulas.
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