Employing about 120 people, LDC has operated the facility since 2009, producing food-grade canola oil and feed meal.
The facility is in Canada’s most productive agricultural zone, Saskatchewan, where canola is the dominant crop, and a dual rail and good road infrastructure support its merchandising operations.
LDC is tapping into the potential of this attractive agricultural zone of Saskatchewan, where more than six million tonnes in additional canola crush capacity have been announced over the last two years, with Cargill, Federated Co-op/AGT, Richardson, and Viterra also moving ahead with construction.
Although LDC has not disclosed the estimated expansion cost, the company expects the construction of an additional canola crushing line to start later this year.
“This investment supports the group’s strategic growth plans by reinforcing core merchandising activities, in this case with additional capacity to originate and process Canadian canola seeds to provide nourishment for people and livestock,” said Michael Gelchie, CEO of LDC.
The company is also excited to be part of the global energy transition, positioning itself as a strategic feedstock provider to renewable energy producers and accelerating its contribution to the mitigation of the effects of climate change.
LDC also provides that the expansion will create further operational synergies and enhance canola seed sourcing capabilities.
“This project reflects our long-term commitment to North America as a key market for LDC, both in terms of origination and distribution, and is expected to contribute to continued local economic development,” said Brian Conn, LDC’s country manager for Canada.
In March 2022, LDC released its 2022 financial results and credited the Grains and Oilseeds platform for its resilient performance after the platform posted a 44% increase in net profit.
The company made various investments in this platform. These investments included setting up a lecithin plant in Indiana, US, committing to constructing a joint-venture food industrial park in Guangdong, China, and constructing new tanks in Abidjan, Côte d’Ivoire, to double the local capacity to store palm oil.
This recent plan to expand the Yorkton canola facility is an investment in the Grains and Oilseeds platform, which the company hopes will continue posting impressive results.