Rogers Sugar (TSX:RSI) Inc announced on Monday that it plans to spend $200 million to increase production capacity at its plant in Montreal by about 20%, or 100,000 tonnes, a year, in an effort to help meet rising food-processing demand in eastern Canada.
The sugar refiner said the initiative includes an expansion of refining capacity with new sugar refining equipment and construction of a new bulk rail loading section in Montreal as well as boosting its logistics and storage capacity in the Greater Toronto Area (GTA).
"Our sugar volumes are steadily increasing, and these investments will enable us to serve future demand growth, support the domestic food-processing industry and improve efficiency within our operations," Rogers Sugar (TSX:RSI) CEO Mike Walton said in a statement.
Rogers Sugar noted the changes will be completed in about two years.
It added that financing for the project includes support from the Quebec government in the form of loans from Investissement Quebec to the company's Lantic operating subsidiary for up to $65 million.
The company also reported on Monday that its third-quarter 2023 revenue rose to $262.3 million from $254.6 million a year earlier, while posting a profit of $0.12 per share, up from $0.03 during the same period last year.
Shares of Rogers Sugar edged 1.6% higher to $5.76 in early-morning trading on Monday.
Contact Sean at sean@proactiveinvestors.com