September 26, 2008

PROVINCE SUPPORTS $20-MILLION HEMP PLANT WITH $4 MILLION IN GRANTS, LOANS
DAUPHIN—Hemp grown and processed in Manitoba is one step closer to insulating homes around the world, with $4 million in provincial loans and grants to kick-start the development of a world-class hemp facility, Competitiveness, Training and Trade Minister Andrew Swan and Agriculture Minister Rosann Wowchuk announced today.

The state-of-the-art facility will create up to 22 jobs in the Dauphin-Parkland region and manufacture and market products made from industrial hemp, which is currently being grown in the area. Once operational, it will turn 23,500 metric tonnes of hemp straw into home insulation and animal bedding every year. The Parkland Biofibre facility will be one of a handful of industrial hemp processing plants in the world.

“We’re working with local entrepreneurs to build upon our competitive advantages and support Manitoba’s new bio-economy,” said Swan.

“This is a unique opportunity for the province to be at the forefront of biofibre processing and trade,” said Conservation Minister Stan Struthers, speaking at the event today.

The provincial government will be providing Parkland Biofibre with a $3 million Manitoba Industrial Opportunities Program (MIOP) loan to help build a $20-million hemp-processing facility in the Dauphin Industrial Park. An additional $1 million capital grant is being provided from Manitoba Agriculture, Food and Rural Initiative’s Rural Economic Development Initiatives (REDI) program to support related project expenses. All provincial funds are contingent on the company securing additional investment from other public and private sources.

“We are building on Manitoba’s agricultural strengths to create new opportunities for rural investment and development,” said Agriculture, Food and Rural Initiatives Minister Rosann Wowchuk. “Hemp has been grown successfully in Manitoba for many years and will now be locally developed into new value-added products.”

“Manitoba is a great place to do business with its strategic location, competitive taxes and low cost of doing business,” said Joe Federowich, board chair of Parkland Industrial Hemp Growers/ Parkland Bio Fibre. “In addition to providing high-wage, high-skilled jobs, this plant will keep Manitoba competitive in the growing hemp industry.”

Once all necessary funding agreements are in place, the design and construction process is expected to take 24 months.

Hemp is a natural fibre product from the Cannabis sativa plant and has been used for thousands of years for rope, canvas, paper, clothing and industrial products. It is an environmentally friendly choice for consumers because it is a renewable resource and creates very little waste. Nearly all parts of the hemp plant, including the fibre, seed and grain, can be used.

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