Aphria to construct $55M extraction centre

Leamington, Ont., marijuana producer Aphria Inc. is boosting production and building a $55-million extraction centre that will have the capacity to process more than 200,000 kgs of cannabis every year.

Construction is expected to “begin immediately” on a “state-of-the-art” facility equipped to conduct a variety of cannabis extractions and produce “world-class 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 the 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 also approved a $20-million boost to support “alternative growing techniques.”