Viterra has agreed to acquire a practically new processing facility located in Belle Plaine, Saskatchewan from ILTA Grain, one of Canada’s largest grain companies, for an undisclosed amount.
Construction began in 2015 and was completed in 2017 at the site, which is connected to Canadian Pacific Railway’s mainline, has a 135-car railcar loop track, storage capacity of 22,000 toms, and processes approximately 350,000 tons of crops per year.
Declining revenue due to “increasingly challenging international trade conditions” prompted ILTA to enter creditor protection on July 8, after its main overseas buyers including India, China, and Saudi Arabia either slowed or halted purchases from Canada.
The deal for the Belle Plaine facility is expected to close on August 27, subject to usual closing conditions and approval from the Supreme Court of British Columbia. Once the deal is completed, the facility, which has multiple logistics capabilities including container, bagged, intermodal, truck, and bulk shipments, will add to Viterra’s existing holdings in the region - an elevator west of Moose Jaw, and a dedicated mustard plant in Moose Jaw.
Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at firstname.lastname@example.org.