WINNIPEG, Manitoba, April 26 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
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.