Latest News

Winnipeg Free Press - PRINT EDITION

Largest flax mill moving to U.S.

Angusville plant had 60 employees

By: Bill Redekop / Open Road Notebook

Posted: 12/7/2012 1:00 AM | Comments: 0

Glenn and Linda Pizzey at the flax mill. It burned last March and will be rebuilt in South Dakota. (KEN GIGLIOTTI / WINNIPEG FREE PRESS ARCHIVES) Photo Store

Enlarge Image

Reston Memorial Theatre has received a $40,000 grant. (SUBMITTED PHOTO)

Manitoba has been out-duelled again for business by a nearby state with news that the world's largest flax mill is moving to the United States, says the family who started the company.

The Glanbia International flax mill, located at Angusville just east of Russell, is relocating to Sioux Falls, S.D., taking 60 jobs with it.

The flax mill was a great local success story. It started in 1990 with Glenn and Linda Pizzey baking flax bread in their kitchen and selling loaves to supermarkets across Manitoba. They eventually built what they believe to be the world's largest flax mill right on their farm. The couple sold the plant in 2007 to Glanbia Nutritionals, a publicly traded multinational based in Kilkenny, Ireland.

The plant burned down last March. Glanbia always said it planned to rebuild, but word came recently that will take place elsewhere.

It's the second Manitoba firm in less than a month to announce it's moving to the United States. Medical-device company, IMRIS Inc., with 130 employees in Winnipeg, recently announced it's moving to Minneapolis.

"(Glanbia's decision) didn't surprise me in the least because of how the business climate is outside of Winnipeg," Linda Pizzey said in a telephone interview.

In part, said Pizzey, it's the old question of whether to process where the raw product is grown or where the product is consumed. The mill's flax is grown on the Prairies but most of its sales are in the U.S., she said.

But Pizzey believes the relocation was also influenced by poor treatment the flax processor received from the provincial government.

The flax mill is on Highway 476, which is "full of potholes" and unfit for large trucks hauling raw flax in or finished product out. It couldn't handle full truckloads.

Instead of repairing the gravel road, Pizzey said, the province sent inspectors to make sure there were no overloaded trucks going to and from the mill.

"They have money for that but no money to even grade the road," she said. "The province put absolutely nothing into infrastructure to encourage this company to stay here."

Throw in Manitoba's payroll tax and it's not surprising companies are relocating to Saskatchewan, the Dakotas or Minnesota, she said. The flax plant has been a major economic driver in a region struggling to hold population.

Glanbia would only say its relocation decision is based on good highway and rail systems in South Dakota and proximity to customers and suppliers.

The company says it will try to accommodate its 58 employees with jobs in Sioux Falls, but Pizzey doesn't expect many to relocate.

"All of the employees are our neighbours and friends, and most of them have lived in the community all their lives. It's not very likely they'll want to uproot their families."

-- -- --

RICHARDSON RESCUE -- Another small rural movie theatre has been saved, this time with help from the Richardson family's Tundra Oil and Gas Ltd.

Tundra recently donated $40,000 so the Reston Memorial Theatre can go ahead and buy a digital movie projector and restore the building.

Reston is located in the heart of Manitoba's oilpatch. Many small rural movie houses are expected to go out of business with the movie industry going digital-only in 2013. Digital projectors cost $60,000 to $100,000.

The Reston theatre was built in 1948 and named in honour of veterans of the world wars. It is owned by the RM of Pipestone. Other individuals and businesses have also contributed funds.

"We were quite ecstatic as a theatre board to get that money (from Tundra)," said board chairman Ian Milliken.

bill.redekop@freepress.mb.ca

Republished from the Winnipeg Free Press print edition December 7, 2012 A11

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.

* Required

In which story did you find the error? *
Please post the headline of the story or the title of the video with the error.
What was the error? *
Please post exactly what was wrong with the story.
What should we have written?
Please indicate your source for the correct information.
Who else should we interview to improve this story?
Please include any contact information you may have.
Can we contact you in the future for advice on stories about this topic?
Yes

No
First Name: *
Last Name: *
E–mail Address: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Phone: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Colour:
Are you blue? If you can see this, leave it blank and get some CSS support.
Enter the words that you see: * This is to prevent our forms from being filled out automatically.
You have failed to correctly identify the words in the box above. Please try again.

More Latest News

Undock

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.