Grain handler and food processor Viterra Inc. (TSX:VT) is expanding its grain elevator in Fairlight, Sask. to boost storage capacity and give it the ability to handle more grain-filled rail cars.
The company said Wednesday it will increase the size of the grain elevator so it can handle 100 rail car deliveries and store more grain for market.
Viterra did not say how much it is spending to grow the operation in the small community in the southeastern Saskatchewan farm belt.
Canadian National Railway Co. (TSX:CNR), the company’s key shipper, was involved in the expansion.
“Viterra’s investment in this facility will ensure more efficient movement of grains and oilseeds for our customers,” said Bob Miller, Viterra’s senior vice-president of North American grain services.
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Andy Gonta, vice-president CN’s bulk sales and marketing division, said Canada’s biggest railway worked with Viterra on the elevator expansion project.
“Viterra’s expansion of its Fairlight facility, coupled with the strength of CN’s scheduled grain service plan, will enhance our joint ability to meet the shipping and handling needs of southeastern Saskatchewan grain farmers.”
Viterra, with about 7-thousand employees, is a global agribusiness with operations across Canada, the United States, Australia, New Zealand, and China.
The company was formed by the merger of the Saskatchewan Wheat Pool and Agricore United and is focused on grain handling and marketing, food processing and also sells fuel, fertilizers and other products to farmers.
Last week, the company struck a deal to sell its North American livestock feed business to a management-led investment group.
The sale includes six feed mills and one pre-mix manufacturing plant in Canada employing total of 260 people, and six feed mills and a commodity blending site in the United States that employ a total of 215 workers.
Viterra said its decision to sell its North American feed business was based on a strategic review and did not affect its New Zealand feed assets.
The company said it wants to focus on its key grain handling and processing businesses going forward.
For the financial year ended Oct. 31, Viterra earned $265.4-million, or 71 cents per share on $11.8-billion in revenue. That compared with a profit of $145.2-million or 39 cents per share on $8.2-billion in revenue the previous year.
Viterra shares rose 22 cents to $10.55 in trading on the Toronto Stock Exchange on Wednesday.
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