New Hog Processing Plant in Saskatoon Going to Cost More than Expected

CANADA - Maple Leaf Foods is looking at design changes to a multi-million dollar hog processing plant to be built in Saskatoon's north end.

Tenders closed at the end of March. Maple Leaf's Vice-President of Manufacturing, Stu Irvine (pronounced Irvin) says 12 tendering packages were issued. However, only three were returned. Irvine says ''two were acceptable and both were somewhere between 25 to 30 percent higher than what the building cost estimates were when we started putting the plan together."

The original plan had the plant costing between $110 and $130 million. Irvine believes the higher quotes are due to the scope of construction going on in the city.

The company is going to look at design changes to reduce construction costs, but Irvine says it will not affect the plant's future production capacity.

calendar icon 10 April 2006
clock icon 2 minute read
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