Montreal: Rogers Sugar Inc. has unveiled a $200-million initiative aimed at expanding its production capacity at its Montreal plant to cater to rising demand in Eastern Canada, according to theglobeandmail.
The company announced on Monday that the plan will result in a growth of approximately 20 percent in production capacity at the Montreal plant, equivalent to an additional 100,000 tonnes per year.
The project encompasses the enhancement of refining capabilities through the incorporation of new sugar refining equipment, as well as the construction of a new bulk rail loading section in Montreal. Furthermore, Rogers Sugar will be extending its logistics and storage capacity within the Greater Toronto Area.
The company anticipates that the augmented production and logistics capabilities will be operational within around two years.
To support the endeavor, the Quebec government is offering financial assistance through loans from Investissement Quebec to the company’s operating subsidiary, Lantic, amounting to a maximum of $65 million.
Rogers Sugar’s CEO, Mike Walton, expressed his views on the project, stating, “This initiative benefits our customers, shareholders, and communities by increasing production to meet growing demand, investing in Canadian manufacturing, and generating employment opportunities. Our sugar volumes are consistently rising, and these investments will enable us to effectively address future demand growth, bolster the domestic food-processing sector, and enhance operational efficiency.”
This announcement coincides with Rogers Sugar reporting a third-quarter profit of $14.2 million, equivalent to 12 cents per diluted share, marking a notable increase from $3.1 million or three cents per diluted share during the corresponding quarter of the previous year.
The company’s revenue for the quarter concluding on July 1 totaled $262.3 million, reflecting an upturn from the $254.6 million recorded during the same period in the preceding year.
