UPDATE 1-Louis Dreyfus to expand Canada canola plant
WINNIPEG, Manitoba, April 26 (Reuters) - Louis Dreyfus Commodities will expand its Canadian canola-crushing plant capacity by 20 percent, adding to a rapid industry expansion to produce vegetable oil.
Several of the company's rivals have already announced expansions at their own crush plants in Canada, the world's biggest grower and exporter of canola, as farm output increases.
Dreyfus will start increasing capacity at the Yorkton, Saskatchewan, plant this summer to eventually reach 3,000 tonnes per day, up from the current 2,500 tonnes, according to a statement posted on its website Friday. The canola plant will be one of North America's largest.
Global demand for vegetable oil from canola continues to grow, making the expansion necessary, said Brian Conn, vice-president of oilseeds for the company in Canada. Canola crushing also produces meal, a less valuable animal feed product.
Richardson International Limited has announced expansions at both of its Canadian canola plants, including its Yorkton, Saskatchewan site, while Bunge Ltd and Archer Daniels Midland Co are also expanding in Canada.
Cargill Ltd is building a new canola crusher near Camrose, Alberta.
Louis Dreyfus also said that it had bought Mitsui & Co Ltd's minority interest in the Yorkton plant, giving it full ownership. It did not release terms of the purchase.