UNITY - The board of directors of North West Terminal Ltd. announced Thursday that it will be idling the company’s grain elevator located near Unity.
Significant headwinds in the grain industry have resulted in negative margins for the grain division the past several years and are expected to continue into 2025, NWT stated in a media release. As part of this action, NWT will be suspending all purchases of grain from producers and letting its primary elevator licence expire. The company plans to continue operating its distillery facility at the same site.
“The temporary idling of the grain elevator is a necessary step during these turbulent times,” says NWT’s President Brad Sperle, who farms near Unity. “We feel it is in the best interests of NWT and stakeholders to idle the elevator and focus efforts on the distillery business while the strategic review process is underway.”
Management expects the elevator to remain idled indefinitely until either grain industry margins improve, or part or all the elevator is sold. The company initiated a strategic review process on Aug. 16, 2023, to evaluate potential strategic alternatives available to it. To assist in this process, and after thoroughly considering proposals from national firms, the company engaged FTI Capital Advisors Canada, a leading Canadian accounting, tax and business consulting firm, as its strategic advisor. FTICA has extensive experience in the agricultural industry, including in-depth knowledge of the Saskatchewan area. The strategic review process continues to be underway with a focus on determining what is in the best interests of NWT and all stakeholders. NWT does not intend to disclose developments with respect to the strategic review process unless and until the board has made a decision or otherwise makes a determination whether disclosure is necessary or appropriate.
NWT is an independent farmer-shareholder owned company headquartered near Unity in the Northwest region of the province. NWT owns and operates an inland-grain terminal and a plant-based fermentation and distillation facility at its Unity location. NWT is also a minority owner of Alliance Seed Corp. (ASC) in Winnipeg, Manitoba, and Alliance Grain Terminal Ltd. (AGT) in Vancouver, British Columbia.
