Pacific Coast Canola celebrates groundbreaking
WARDEN - The recession that toppled other businesses almost stopped plans for Pacific Coast Canola's new oilseed processing plant in Warden.
But not quite.
When the recession's effects hit in 2008, the question of giving up or moving forward on building the Warden plant was discussed, said Joel Horn, the company's president and CEO, during the plant's groundbreaking in September.
"The City of Warden said, 'If you keep moving forward, we'll hang in there with you,'" Horn said.
The Port of Warden, Grant County PUD and Washington state agencies followed suit.
In 2009, there were people who worked on the project at no charge, agreeing to be paid at closing, Horn said.
The project succeeded and the people were paid, he said.
"We paid back all of those folks," Horn recalled. Aside from special milestones related to his family, "it was the proudest moment of my life," he added.
Site preparation on the $109 million plant began in July, followed by the demolition of existing installations and pouring of the building's pad. Construction follows at a later date.
The plant is expected to start production in late 2012 or early 2013.
Between 30 and 40 new permanent jobs will be created at the facility in about 18 months. Positions include plant manager, equipment operators and maintenance.
The workers will produce Canola oil and Canola meal at the 24-7 operation.
The job totals do not include work created for those outside the facility, such as farmers growing Canola.
Horn told the Columbia Basin Herald he would love to have as many local residents hired as possible.
Pacific Coast Canola already hired Bob Whitaker, a retired Warden-area fire chief, to help the contractor and assist with duties on the ground. He is their first employee in Warden.
"Bob knows a lot of the farming community," Horn said.
Construction jobs are expected to total between 75 to 80 workers, said John Doherty, project manager with the Portland, Ore.-based ICG, Pacific Coast Canola's general contractor.
Doherty said he will probably bring some of his existing workers to Warden, but plans to hire local subcontractors for site development, concrete and structural steel work.
ICG has experience building heavy industrial plants, Doherty explained.
During the groundbreaking ceremony, Horn publicly thanked Sen. Janéa Holmquist-Newbry, R-Moses Lake, for her efforts on the project.
Horn first got involved with the project in September 2005, during the country's energy crisis. Energy dependence was a big issue.
The company looked at different areas of Washington state for a new plant and even had a letter of intent to build a site in Western Washington.
Horn anticipates a large demand for Canola seed, with about $200 million possibly resulting in new Canola seed purchases.
In 2007, New York City banned unhealthy oils in its restaurants. Now Canola seed grown by farmers can be used for vehicle fuels, salad oils and to fry foods.
Last year, there was a 9 percent increase in Canola oil consumption.
The company is hoping to buy a lot of the seed in Washington state.
Once operational, the Warden plant can produce 837 million pounds of Canola seed annually.
He asked the audience what Canola stands for. It is a term used for "Canadian oil low acid."
The company's team talked to people in Canada about growing the seed and found farmers to grow 20 million acres of Canola.