A week after its massive four-tank convoy slowed traffic from Sarnia to London, Labatt Breweries has officially announced a $26.6 million investment in its London plant.
Now erected at the downtown brewery, the four new beer tanks will increase the capacity of the brewery's fermenting cellar by 597,000 hectolitres per year. That is the equivalent of six million more bottles of beer produced annually.
According to company officials, the $13.5 million investment in the fermenting cellar was made to meet a growing consumer demand, while preparing the site for future growth.
Last Tuesday and Wednesday, the tanks were trucked in from the harbour in Sarnia, through Lambton and Middlesex counties, and into London. The convoy had to move slowly due to the large size of the tanks. At times traffic had to be halted to allow the tanks, which took up two lanes, to pass. Hydro crews also had to disconnect or lift power lines over the wide load. That caused temporary hydro outages along the travel path. Once at the London brewery, a large crane lifted the tanks into place. They are expected to become operational in the near future.
"All of our employees are extremely proud that the tanks are finally installed," said Alex Martel, general manager of the London brewery. "We are finalizing construction work, but this is going a long way to improving our capacity capabilities, as well as driving our sustainability goals for the future."
In addition to the new tanks, Labatt also announced its spending $13.9 million for two new packaging lines. This new technology uses sustainable paperboard, eliminating the need for plastics and significantly reduces the need for glue.
Martel called the new technology "critical."
"We want to be part of a better world and we want to create sustainable initiatives that will drive our business forward," said Martel. "These new capabilities are environmentally friendly. It is all recycled paperboard that we are using and that is really expanding our portfolio from different packages that we weren't capable of making here before."
The multi-million dollar production and sustainability expansion will not bring any new jobs to the London plant. However, it does reinforce the brewery's commitment to remain in the Forest City.
"To see this company now reinvest again in London, in a substantive way, in what is already their largest brewery, that is a tremendous confidence in our city and confidence in our downtown," said Mayor Josh Morgan. "It really is something that all Londoners should appreciate. It means that this company will be here for many, many years to come."
Labatt was founded in 1847 and currently employs more than 3,600 people. Its London brewery brews over 40 per cent of the beer it produces in Canada.