Medical marijuana production plant coming soon to Montreal's West Island
'The competition will be very fierce,' when recreational marijuana is legalized, warns economist
Anondescript building in Montreal's West Island willbe producing close to 4,000 kilograms of marijuanaannually as soon as it getsapproval from Health Canada.
AuroraCannabis is hoping to expandits business and break into the Quebec market with a new medical marijuana production plantonHymusBoulevard inPointe-Claire.
"We hope to have production coming out of that plant before the end of 2017, if we can,"said executive vice-president CamBattley.
Aurora Cannabis already has a facility in Mountain View County inAlberta that grows, processes, packages and ships theproduct across the country. Another, its largest, is being built in Edmonton.
The new Quebec-based plant will allow the organization to expand into new territory, after Aurora acquired the buildingfrom a medicinal marijuana producer that went bankruptwhile seeking its licencefrom Health Canada.
"We did want to have exposure in Quebec," he said. "We want to be in the Quebec market, and we wanted to service not just Quebec but eastern Canada."
Impact on West Island city
In accordance with Health Canada's strict regulations,Battleysaid the distinct odour of cannabis won't be emitted into the air from the 3,700-square-metre (40,000-square-foot)facility.
"We have very tight filtration of the air before it escapes from the facility to make sure there is no external smell of the cannabis," saidBattley.
Aurora has alsotaken measures to prevent break-ins and theft. The company hasblanketedthe grounds and the interior of the building with security cameras.
"To my knowledge,there haven't been any break-ins at any licensed producers in Canada, so far," saidBattley.
The bunker-like appearance of the building contrasts with the quiet residential neighbourhood just across the street, butPointe-ClaireMayor MorrisTrudeauis handling Aurora's expansion as business as usual.
"I don't consider it a dangerous thing, having it around inPointe-Claire," saidTrudeau. "I believe the company will be well run."
High-risk expansion
With the legalization of cannabis on the horizon in Canada, Aurora plans to produce and sell recreational marijuana eventually, too.
"We still have to abide by the rules we still have very tight regulations but we do see a new market to expand," saidBattley.
But economist James McIntoshwarns that companies such asAurorawill face stiff competition when recreational cannabis becomes legal.
"My guess is when marijuana becomes legalized depending on the legislation in Canada big pharma is going to be very interested in this," said McIntosh, a professor at Concordia University and an expert in the economics of cannabis.
"They are much more efficient, and they have much deeper pockets."
McIntoshsaid Aurora will then have to face off against both large pharmaceutical companies and Canadians who decide to legally grow their own marijuana plants.
"The competition will be very fierce once marijuana becomes legal. The price of marijuanaisgoing to fall like a stone when people can grow it outdoors or in large greenhouses," said McIntosh.
For now, Aurora will stick to medical marijuana. After thePointe-Clairefacility receives a production permit, it will then have to apply for a permit to sell its product.
Battleypredicts the company will create up to 50 positionsat its new plant.
"We're projecting about 40 to 50 jobs, and this will range from growers to scientists," saidBattley.
With files from Simon Nakonechny and CBC Montreal's Daybreak