OLDS — The impending closure of the SNDL marijuana production plant in Olds is “obviously not great” but the town's economy is diversified and strong enough to withstand that blow, chief administrative officer Brent Williams says.
Williams gave that reaction after the company, formerly known as Sundial Growers Inc., announced late last week in a news release that it plans to close the facility. It did not say precisely when the plant will close.
The company said it will be consolidating its cultivation, research and development, and “supply chain efficiencies” at its plant in Atholville, New Brunswick.
In fact, the company plans to expand its operations in that province, “creating potential employment opportunities in the area.”
In an email, Williams said town officials first learned of the closure via a story posted on the Albertan website.
“It's obviously not great,” he wrote. “SNDL employs around 45 people and accounts for almost five per cent of our tax base.”
Williams said later that works out to about $450,000.
When the SNDL facility opened five years ago, it was expected to eventually employ 500 people. However, due to a difficult market environment, as the years went by, the company began shedding jobs at the plant.
“Fortunately, the town has a diverse (and) robust commercial and industrial base, so we can withstand the impact this will have,” Williams wrote.
“I have been in contact with SNDL, and their operations team is meeting this week to determine what the plan is for the facility in Olds.
“We are tentatively scheduled to meet with SNDL at the end of the month and (will) hopefully have more news to share then,” he added.
News of the closure also caught Olds & District Chamber of Commerce president Doug Rieberger by surprise.
“It’s never good for a local town to lose a large business like that – not just on the tax revenue side, that sort of thing – but just the people within the community and that,” he said.
Rieberger said if the employees working there move out of town for employment, that will also hurt other businesses because those workers no longer shop in local stores, eat in local restaurants or patronize other businesses.
However, Rieberger said the shutdown might help some local businesses that have been experiencing labour shortages if former SNDL employees apply for work there.
Rieberger said it may be difficult for SNDL or the Town of Olds to find another business to locate in the plant when it’s finally closed.
“It’s a very purpose-built facility, so that makes it difficult to now find someone else to fill that role or that facility,” he said.
