Louis Dreyfus Commodities has purchased the minority ownership interest in its Yorkton, Sask. canola crushing facility that had been held by affiliates of Mitsui & Co., Ltd.
The deal took effect on March 29, 2013. Louis Dreyfus Commodities (LDC) now owns 100 per cent of the facility.
Operationally, the buyout will not change things in Yorkton, said Darryl Flunder, procurement manager, Louis Dreyfus Commodities at the plant.
"Our customers and farmers won't notice a change," he said, adding LDC has been the operations manager for the plant, and that simply continues.
In a prepared release Brian Conn, vice-president, oilseeds for Louis Dreyfus Commodities in Canada, said the company anticipates a seamless transition for customers and suppliers.
"For canola growers dealing with the facility, it will be business as usual," said Conn. "There will be no personnel changes at the facility as a result of the transaction and we will continue to provide a high level of service to our growers."
When the plant was constructed partnering with Mitsui was seen as a major benefit especially in terms of the Japanese market.
However Flunder said the United States and China have evolved to be primary markets for production from the plant. He added LDC "has always had a really good relationship with Mitsui in Japan," with the two companies "doing a lot of work together."
That relationship will continue, he added.
The local facility was named LDM in reference to both Louis Dreyfus and Mitsui, but no decision on whether the name will be changed has been made, said Flunder. He said there is potentially a chance it will happen.
"We haven't come to a decision on that," he said, adding that will be decided over the next few months.
The facility opened in 2010 with a rated crushing capacity of 2,500 tonnes per day. This summer and fall, Louis Dreyfus Commodities will make a significant capital investment to increase capacity to 3,000 tonnes per day, making the Yorkton facility one of the highest-capacity canola crushing plants in North America. Based on the 13.3 million tonnes of canola seed grown in Canada in 2012, the expanded facility will be able to crush approximately eight per cent of the country's canola seed production under one roof.
"Global demand for Canada's healthy, versatile canola oil continues to grow," said Conn in the release. "Having a larger facility will allow for a deeper relationship with canola growers, as we work together to meet this demand and bring greater value to our customers around the world."
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