CAN (NB): Sundial Growers' Olds cannabis production plant to close

SNDL Inc., formerly known as Sundial Growers Inc., is closing its Olds cannabis growing/processing plant after five years in operation. The decision was announced in a news release issued on October 19. The release did not say when exactly the closure will occur or how many employees currently work at the plant and will thus be affected by the shutdown.

The company announced it will be consolidating its cultivation, research and development, and "supply chain efficiencies" at its plant in Atholville, N.B. In fact, the news release said SNDL plans to expand its operations there, "creating potential employment opportunities in the area."

"In the past year, we've transformed our facility footprint with a clear goal of achieving profitability in our cannabis operations by 2024. "As a result, we have taken the difficult but necessary steps to simplify operations throughout our business, which includes the closure of our Olds, Alberta facility," Tyler Robson, SNDL's president of cannabis, was quoted as saying in the news release.

The release said by "optimizing its facility footprint," the company expects to save more than $10 million a year through a reduction in fixed overhead, power costs, and "labor efficiencies." Only five short years ago, Sundial Growers held an exuberant official ribbon-cutting ceremony to celebrate the opening of what analysts described as the company's "state-of-the-art flagship facility" in Olds, estimated at the time to cost $110 million.

Read the entire release at Mountain View Today

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