NEW POS PILOT PLANT UPGRADES WILL HELP SASKATCHEWAN BUSINESS COMPETE

A $1.8-million upgrade to facilities at the POS Pilot Plant Corp. will allow

Saskatchewan food and pharmaceutical companies to access leading-edge

processing equipment and research facilities at a reasonable cost.



POS has purchased three unique processing systems and equipment with $1.3

million from the joint federal-provincial Canada-Saskatchewan Agri-Food

Innovation Fund (AFIF).



Saskatchewan Economic and Co-operative Development provided $465,000 from its

Strategic Investment Fund to help POS upgrade its facilities to international

Good Manufacturing Practice (GMP) standards. GMP certification is essential to

operating in the global bioprocessing industry, which is involved in research

and testing of materials such as starches, carbohydrates and proteins.



"This $1.8-million investment into research and technology in Saskatchewan will

create tremendous opportunities for farmers and the sector as a whole,"

Director of the Saskatoon Research Centre Dr. Ashley O'Sullivan said, on behalf

of Agriculture and Agri-Food Minister Lyle Vanclief. "The new, optimal

environment for research and technology at POS will provide Canada's agri-food

industry with the tools to take advantage of new opportunities."



The new equipment allows POS to provide industry with state-of-the-art

technology for product development and processing in the cosmetic, food,

nutraceutical and pharmaceutical sectors. This research, in turn, helps

clients scale-up to commercial production.



"The upgrade at POS Pilot Plant Corp. is another example of the commitment both

the provincial and federal governments have to build infrastructure that builds

business in Saskatchewan," Agriculture and Food Minister Clay Serby said.

"This facility can now offer new services second to none in North America."



Economic and Co-operative Development Minister Janice MacKinnon said the POS

upgrade provides Saskatchewan companies with a competitive advantage.



"The new equipment and facility upgrades give business in this province access

to leading-edge resources that are normally available and affordable only to

large multi-national companies," she said. "Our support underscores our

commitment to the critical research and development that strengthens our value-

added industries."



"By supporting the work of POS, the Government of Canada is helping to create

high-paying, high-tech jobs and opportunities for the people of Saskatchewan,"

Natural Resources Minister Ralph Goodale said. "Through unique federal-

provincial programs like the Canada-Saskatchewan Agri-Food Innovation Fund,

government and industry can form a partnership to enrich Canada's

economy."



The $91-million AFIF was established in 1996 to promote and support emerging

primary production and value-added processing activities in Saskatchewan. AFIF

is funded two-thirds by the federal government and one-third by the province.



Saskatchewan's Strategic Investment Fund encourages the development of research

infrastructure and innovation in Saskatchewan. It helps enhance the

competitiveness of Saskatchewan industries, as well as develop new value-added

products, processes and technologies to expand Saskatchewan's economy.



POS Pilot Plant Corporation is a confidential, not-for-profit, contract

Research and Development facility specializing in producing bioprocessing

solutions. POS focuses primarily on helping industries develop high-value,

biologically-based components for nutraceuticals, functional foods,

pharmaceuticals, cosmetics, foods and feeds. POS, which began operation in

1977, is located in Saskatoon.



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For more information, contact:



Marilyn Huber Bob Ellis

Communications Co-ordinator, Saskatchewan Economic

POS Pilot Plant Corp. and Co-operative Development

Phone: (306) 978-2855 Phone: (306) 787-8983



John Babcock Elin Viberg

Canada-Saskatchewan Canada-Saskatchewan

Agri-Food Innovation Fund Agri-Food Innovation Fund

Phone: (306) 787-9768 Phone: (306) 780-8117