$460M expansion for Simplot plant in Portage

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This article was published 14/02/2018 (2255 days ago), so information in it may no longer be current.

More than doubling the production capacity of its Portage la Prairie potato processing plant, J.R. Simplot Co. announced a $460-million investment on Wednesday.

The increase from a 180,000-square-foot space to a 460,000-square-foot space will result in the creation of 87 full-time jobs and will necessitate the farming of an additional 18,000 acres of potatoes per year in advance of its late 2019 opening.

There’s more than adequate room within the Manitoba agricultural sector to accommodate this expansion, Keystone Potato Producers Association Inc. president Chad Berry said in reaction to yesterday’s news.

Berry, a producer from the Glenboro area with 2,000 of his 12,000 acres of farmland devoted to potatoes, got into the tubers in the late 1990s and has expanded his footprint whenever either McCain Foods Canada’s Carberry plant or the Portage la Prairie Simplot plant increased their capacities.

With potatoes a capital intensive industry, he said the Simplot expansion would result in the construction of infrastructure throughout the province’s farmlands.

While it’s more likely that producers would expand their footprints to accommodate the growing need, Berry said his hope is to see new producers enter the growing marketplace.

Fellow Westman potato farmer Paul Adriaansen said he looks forward to the security the Simplot expansion would bring producers such as himself.

Adriaansen farms 4,250 acres of potatoes alongside other crops, with his base of operations north of Carberry.

Although he said it has been a “good, steady industry” during both his childhood growing up on a potato farm and 19 years having branched out on his own, it’s still refreshing to see a company express such a degree of faith in the industry.

“There are lots of guys who are looking for a contract and would be bigger if they could be, so this would be a big benefit to those guys looking to expand.”

The Manitoba Progressive Conservatives are supporting the expansion with tax-increment financing up to $6.31 million to assist with anticipated capital investments and road improvements. The province will also contribute $522,000 toward employee training.

Manitoba Hydro will provide $1 million in PowerSmart program funding for electrical and natural gas efficiency projects, based on the plant meeting program guidelines.

J.R. Simplot CEO Bill Whitacre flew in for the announcement and recalled the last time he visited the Portage facility with Simplot himself.

“(Simplot) was in a combination of a wheelchair and a walker and he kept saying, ‘Boys, we’re going to do it big in Manitoba,’” Whitacre said.

“When it comes to the Simplot company, we’re committed to the potato. And we’re not just committed to it in Manitoba, we’re committed to it in North America and all over the world,” Whitacre said.

“It just so happens that this facility rounds out our portfolio and I can’t thank you all enough for the efficiency and the commitment that you made to us so that we could bring this quickly and make decisions quickly.”

Founded in 1929, J.R. Simplot Co. is headquartered in Boise, Idaho, and has operations in the United States, Canada, Mexico, Australia, New Zealand and China.

“Simplot has long been an outstanding partner and contributor to the community of Portage la Prairie and the surrounding area,” said Kam Blight, reeve of the Rural Municipality of Portage la Prairie, in a statement.

“We are beyond excited for them to grow their operations here and create even more economic opportunities for the region. In addition to the recent announcement of Roquette, business truly is booming for Portage la Prairie.”

In September, European-based producer Roquette broke ground on a $400-million pea-protein manufacturing plant in Portage la Prairie.

» tclarke@brandonsun.com

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