Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced a key milestone in establishing its Hemp Industrial Park in the Southern Tier region of New York State. It has secured a 308,000 sq. ft. facility on a 48-acre property in Kirkwood, NY.
The company said that design development would begin immediately with construction expected to start this summer. Canopy said in a statement that its vision for the property is to build the infrastructure necessary to support hemp-derived cannabinoid extraction and related manufacturing together with providing an opportunity for participation by other businesses in the hemp industry.
“As we establish a stronger foothold in the exciting US market, we want to do so in a way that prioritizes local vendors and creates meaningful career opportunities for people in the communities where we operate,” said Bruce Linton, Chairman & co-CEO, Canopy Growth. “The vision for our investment is to create an eco-system that inspires new entrepreneurs and generates more economic stimulus than a single company can offer. As we build the facilities, we’ll also attract like-minded businesses who share our excitement for the emerging hemp and hemp-derived cannabinoid markets.”
New York State of Mind
In a boost to the New York cannabis industry Canopy said it will begin hiring senior leadership in late 2019 and recruit the full workforce in mid-2020. Canopy Growth also noted that it has also begun securing farm capacity to supply enough hemp for its own future extraction and formulation activities within the park. The company intends to prioritize farms within New York State for the supply of hemp at this site.
“We welcome Canopy Growth to Broome County with open arms. We haven’t seen an investment like this in Broome in some time, and we’re so excited a company like them is setting up shop in our area,” said Broome County Executive Jason Garnar. “With Canopy Growth coming to Broome County we look forward to seeing the benefits in job investment.”
Now that Canopy Growth has secured its building, the company said it expects to begin work quickly on Pine Camp Drive and with local construction teams retrofitting the facility, operations will scale-up quickly. It was once a vacuum parts building. It is expected that the operations will create hundreds of new local full-time positions, in addition to the contracted construction workers.
New York State granted a hemp license to Canopy Growth in January of this year, allowing Canopy to establish operations in the state and build a facility for hemp-derived cannabinoid extraction and processing for various applications. The new hemp facility will be capable of producing tons of hemp extract on an annual basis. In 2018, Canopy Growth acquired leading hemp research company, ebbu, Inc. The R&D, along with ebbu’s Intellectual Property will be applied directly to Canopy Growth’s hemp and THC-rich cannabis genetic breeding program and its cannabis-infused beverage capabilities.
Canopy also said in its statement that it will begin approaching third-party organizations to join the ecosystem. Canopy Growth is eager to attract businesses and researchers focused on every application of the hemp crop such as fibers, seeds, and hemp-derived cannabinoids.