Pot producer Aphria to build $55M centre, ramp up production
Leamington, Ont., marijuana producer Aphria is boosting production and building a $55-million extraction centre that will have the capacity to process more than 200,000 kilograms of cannabis every year.
Construction is expected to “begin immediately” on a “stateof-the-art” facility equipped to conduct a variety of marijuana extractions and produce “worldclass cannabis concentrates,” the company said in a release. The first concentrates are expected to be released by March of next year.
“The Extraction Centre of Excellence will give Aphria a significant competitive advantage in cannabis concentrates, which are expected to be a significant product category,” said Aphria CEO Vic Neufeld in a release. “This facility will be the centre of industry-leading R&D and commercial production of next-generation cannabis concentrate products.”
Leamington Mayor John Paterson called it an “exciting announcement” for the town.
“The opportunities for those in the science fields and medical fields have been lit on fire right here in Leamington,” said Paterson. “We’re expanding our horizons in Leamington so that when our youth go away to school they ’ve got something to come home to.”
The new facility “will be equipped to conduct a wide range of cannabis extractions, including C02, butane and ethanol, and produce world-class cannabis concentrates, including fractionated distillates,” said the company in a release.
Aphria’s board of directors also approved a $20-million boost to support “alternative growing techniques” at the Aphria Diamond facility, which are expected to increase capacity by 20,000 kgs annually, bringing the yearly haul to 140,000 kgs.
As well, Aphria announced a $10-million expansion of greenhouses built on a portion of an 18-acre property the company acquired in December 2017, which is expected to increase the annual yield on that property by 10,000 kgs.
All told, the changes are expected to boost annual cannabis production by 30,000 kgs, bringing Aphria’s annual capacity to 255,000 kgs.
“We will have ample supply to fulfil our commitments under our supply agreements with provincial retail establishments across Canada and with partners like Shoppers Drug Mart,” said Neufeld in a release.
“Our experience and our relentless focus on maintaining an industry leading low-cost model, allows for healthy margins across the supply chain and positions Aphria as an enviable leader in the global cannabis industry.”