Louis Dreyfus Canada Ltd. has announced it has purchased the minority ownership interest in its Yorkton canola crushing facility that had been held by affiliates of Mitsui & Co., Ltd. ("Mitsui"). The deal took effect on March 29, 2013. Louis Dreyfus Canada now owns 100 per cent of the facility. Louis Dreyfus Canada and Mitsui determined, after a review of the Yorkton investment, that this transaction best served the interests of both companies as they continue and further develop their commercial relationships.
According to Brian Conn, Louis Dreyfus Canada's Vice-President, Oilseeds, the company anticipates a seamless transition for customers and suppliers.
"For canola growers dealing with the facility, it will be business as usual," says 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."
The facility opened in 2010 with a rated crushing capacity of 2,500 tonnes per day. This summer and fall, Louis Dreyfus Canada 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
Conn says that the purchase and the planned expansion demonstrate Louis Dreyfus Canada's commitment to and confidence in the canola industry.
"Global demand for Canada's healthy, versatile canola oil continues to grow," he adds. "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."
