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Canadian refined sugar distributor Rogers Sugar has announced a $200 million investment in its wholly-owned operating subsidiary, Lantic’s, Montreal, Canada plant. The investment will increase the plant’s capacity by around 20% – or 100,000 metric tons – as the company strives to meet increasing demand in Eastern Canada. The project includes an expansion of refining capacity with new sugar refining technology and equipment, as well as the construction of a new bulk rail loading section in Montreal that will serve increased shipments to the Ontario market. The Montreal component will utilise available space in the existing refinery buildings and site, allowing production to continue with minimal disruption. The company explains that using existing facilities will minimise construction impacts to the surrounding community. Mike Walton, president and CEO of Rogers Sugar and Lantic, said: "This project is good for our customers, our shareholders and our communities, as we add production to serve rising demand, invest in Canadian manufacturing and create jobs. Our sugar volumes are steadily increasing, and these investments will enable us to serve future demand growth, support the domestic food-processing industry and improve efficiency within our operations." According to Rogers Sugar, the last few years have seen demand for high-quality refined sugar increase in Eastern Canada to meet the growing production of sugar-containing food products for Canadian and export markets. The company says that it currently meets the increasing demand of the industrial market by transporting bulk sugar produced at its Vancouver plant to its eastern-based customers. By expanding refining capacity closer to its customer base, Rogers Sugar expects to reduce freight costs, drive improved margins and leave more Western Canadian capacity available for alternative sales opportunities, including export outside of Canada. Rogers Sugar says it will fund the growth investment through a financing plan that will include funding from debt and equity. The plan includes support from the Quebec Government in the form of loans from Investissement Quebec to the company's subsidiary, Lantic, for up to $65 million.