Pubdate: Tue, 18 Aug 1998 Source: Winnipeg Free Press (Canada) Section: Business Contact: http://www.mbnet.mb.ca/freepress/ Author: David Kuxhaus, Legislature Reporter PLANNED HEMP FACILITY A FIRST $6-M Plant Expected To Create About 30 Jobs, Open Doors By July '99 A $6-MILLION hemp processing plant will be up and running in rural Manitoba by next July. Douglas Campbell, general manager of Consolidated Growers and Processors of Canada Ltd., said the company has harrowed it down to three or four locations in rural Manitoba, and will announce its choice by November. The new plant will be 112,000 sq. ft. and employ about 30 people. Campbell could not say how much the jobs will pay, although he said about two-thirds of them will be low-tech positions. Campbell said it would be premature to discuss details concerning the financing of the project. He said at this point, to government money is involved. But that could change, he added. "Obviously if we are eligible for (government) programs we want to look at that." he noted. CGP is made up of a group of North American and European investors. The federal government lifted the ban on growing hemp in March. Production was prohibited in 1938 because hemp is a member of the cannabis family and contains the substance THC which gives pot smokers their high. The potential uses of the plant are broad, ranging from clothing to plastics. Hemp oil can be used in cooking or for burning in automobile engines. Campbell said the Manitoba facility will produce fibre for insulation and paper-making. "The intention would be to run three shifts with one processing line," he added. The new Manitoba plant is part of a larger plan which will see three to four facilities built in Western Canada over the next couple of years. Campbell said they would like to branch out into secondary processing. "All of our facilities are being designed for future expansion to produce value-added products," said Campbell. He said CPG chose Manitoba as the site for their first plant because there isn't enough hemp being grown in other western provinces to justify a facility. CGP's main objective right now is to get farmers interested in growing the plant, Campbell said, adding that because of the sooner-than-anticipated lifting of the ban, only 1,200 acres of hemp were planted in Manitoba this year. "Many growers did not receive adequate notice," he noted. CGP has contracts with about 30 growers in the province. The first fibre crop was harvested last week in La Riviere. Campbell said the remaining crops should be in by the end of September or early October. The fibre will be stored over the winter and processed in July. Campbell said that involves separating the inner fibre from the outer fibre. "It's like peeling the skin off a banana," he explained. Agricultural Minister Harry Enns said having a processing plant in Manitoba will help convince farmers that hemp is a viable alternative. "This sends a very strong signal to farmers," said Enns. Campbell said farmers could gross in excess of $400 per acre. - ---