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Old Posted May 31, 2008, 11:03 PM
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Quote:
JRI Proceeds with Canola Crushing Plant
Written by Neil Billinger - 600 Action News-Local First
Friday, 30 May 2008

Yorkton will be home to a pair of new canola crushing plants after all.

In September 2006 . . . James Richardson International (JRI) and Louis Dreyfus announced plans to build facilities that would be able to crush more than 800-thousand tonnes of canola per year.

However . . . rising construction costs created delays for both companies.

Louis Dreyfus solved the problem by taking on a Japanese partner. Its $120 million plant will be ready by the middle of 2009.

JRI reviewed its engineering plans to make sure there would be no unexpected cost overruns. The board of directors has now given the final go-ahead for construction . . . and the plant should be running by the spring of 2010.

JRI spokesman Jean-Marc Rouest confirms the plant will cost in excess of $100 million . . . but will not release an exact figure. It will be same same size as orginally announced . . . crushing 2400 metric tonnes of canola a day and producing 1,000 metric tonnes of fully refined food grade oil per day.

He says JRI's network of Pioneer Grain elevators will make it possible to move canola from long distances to the Yorkton plant, if necessary.
Source

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Official news release...

Quote:
JRI Confirms Construction of Yorkton Canola Processing Plant
May 30, 2008 12:00:00
FOR IMMEDIATE RELEASE

JAMES RICHARDSON INTERNATIONAL
CONFIRMS CONSTRUCTION OF
YORKTON CANOLA PROCESSING PLANT


May 30, 2008

Winnipeg, Manitoba, Canada – James Richardson International Limited (JRI) today announced that its Board of Directors has unanimously approved the immediate construction of a canola processing plant in Yorkton, Saskatchewan.

In September 2006, JRI announced its intention to build a state-of-the-art canola processing plant in Yorkton as an expansion of its existing food processing business. However, the unexpected and dramatic escalation of construction costs required JRI to review its engineering specifications and satisfy itself as to the strength of its costing estimates before moving forward. The required review has now been completed and JRI has concluded that the project will proceed as planned.

“This is a very important decision for JRI and for the Richardson family” said Hartley T. Richardson, JRI Chairman and President and Chief Executive Officer of JRI’s parent company James Richardson & Sons, Limited. “It increases and diversifies our presence in the agri-food industry on a global basis and ensures that our food processing business will continue to grow. In the past year we have expanded our traditional grain-handling business through the acquisition of former Agricore United assets and we are now turning our attention to the growth of our food processing operations.”

JRI currently owns and operates Canbra Foods Ltd., Canada’s largest fully integrated canola crushing/refining/processing/packaging plant located in Lethbridge, Alberta. The addition of the new plant, capable of processing 840,000 metric tonnes of canola per year, will triple JRI’s canola oil production.

JRI President Curt Vossen commented on the importance of adding the Yorkton plant to JRI’s current canola processing business. “Over the past several years, we have witnessed a significant increase in the demand for vegetable oil generally, and canola oil specifically, on a global basis for food and biofuel. The construction of the Yorkton processing plant will allow us to better meet the existing and future needs of our world-wide customer base.”

Mr. Richardson also commented on the rationale for delaying construction of the plant and the timeline for construction. “An investment of this magnitude requires a proper mix of caution and optimism. Given the escalation in the cost of building materials and labour, along with the volatility in agricultural commodity prices, it was important that we satisfy ourselves of the project’s long-term viability. A key ingredient to the success of the Richardson group of companies over more than 150 years of operation has been its commitment to making the right decision rather than an expedient one. Now that we have made the decision to proceed, we will do so swiftly and expect the plant to commence production in the second quarter of 2010.”

JRI looks forward to increasing its corporate presence in the Yorkton area. “JRI is very pleased to have developed a close working relationship with the Rural Municipality of Orkney over the past several months. The Municipality should be commended for its hard work in support of the project and we look forward to working with them, and the City of Yorkton, throughout the plant’s construction and for several years in the future” said Mr. Vossen.

The construction of the plant will be led by FWS Industrial Projects Ltd. as construction manager, with a complete team of contractors and engineers retained for all key elements of construction. Please refer to background information for further details.
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