Pico to Build $160M Canola Plant Near Hallock
Pico Holdings, Inc., last week announced plans to build a $160 million canola processing plant near Hallock. Construction of the plant is scheduled to begin January 10.
La Jolla, California-based Pico secured a $100 million construction loan facility from ING Capital, LLC, which includes a $10.5 million working capital facility. Pico expects to close on the credit facility this spring.
Pico also announced that it has completed its acquisition of Fargo, North Dakota-based Northstar Agri Industries-an agribusiness concern that will build and operate the canola plant. Pico provided about $60 million in equity for an 88 percent ownership interest in Northstar.
The canola plant, which will have an integrated refinery, is expected to be operational by the fourth quarter of 2012.
Construction, engineering, and technology contracts for the plant have been executed with St. Paul-based Karges-Faulconbridge, Inc., St. Paul-based McGough Industrial Construction, LLC, and Minneapolis-based Crown Iron Works Company.
According to a Northstar press release, the project will create more than 200 jobs for skilled craftsman. Additionally, when the plant is completed, it will provide 47 full-time jobs in Kittson County with a total payroll exceeding $3.5 million and “significant related economic activity in the region.”
Pico is a diversified holding company that seeks to acquire, build, and operate businesses through which it can create value or that it sees as undervalued.