TORONTO, ONTARIO, CANADA — P&H Milling Group will spend C$40 million to construct a new bulk flour mill on Pier 10 in Hamilton Harbor, Ontario, Canada, and will receive a C$5 million investment from the Ontario government for the project.

This is the first greenfield site flour mill to be built in Ontario in 75 years. P&H Milling Group, a division of Parrish and Heimbecker, is the second largest flour milling company in Canada and the largest flour miller in Ontario.

It will have a production capacity of 7,200 cwts of flour per day. The 10,000-square-foot facility will be seven stories high.

Funding is being provided through the Jobs and Prosperity Fund - Food and Beverage Growth Fund. The government said the mill will create sustainable jobs, expand export opportunities, and strengthen the province's food and beverage processing sector.

“Parrish & Heimbecker has been part of the Canadian agriculture and food community for over 100 years and we value the partnerships we have developed over that time,” said Derek Jamieson, president and chief operating officer of P&H Milling Group. “This investment through Ontario’s Jobs and Prosperity Fund supports the Milling Group’s ongoing commitment to innovation, productivity and quality.”

The new bulk mill will house efficient state-of-the-art equipment including additional grain and flour storage. The expansion will enable the company to process 25% more grain, and help increase the company's intake of Ontario wheat by over 10% more annually.

“Through strategic investments in dynamic companies such as P&H Milling, our government is helping to foster growth in Ontario’s food and beverage processing sector,” said Jeff Leal, minister of agriculture, food and rural affairs. ”By investing in the first flour mill in Ontario in 75 years, we are pursuing new innovations and seizing increased market opportunities while supporting our farmers, strengthening our communities and boosting our economy.”

The project will increase P&H Milling Group's productivity and improve its competitiveness, the government said. P&H has seven flour mills in Canada with a total wheat flour capacity of 54,500 cwts, according to the 2016 Grain and Milling Annual. Facilities are located in Lethbridge, Alberta; Halifax, Nova Scotia; Acton, Cambridge and Hanover, Ontario; Montreal, Quebec; and Saskatoon, Saskatchewan.

Production is expected to start at the new mill at the end of 2016. Bühler AG, Uzwil, Switzerland, will be the primary equipment supplier for the new mill.

The investment is expected to create 16 new jobs while retaining more than 200 jobs in Ontario.