Canadian Sand and Proppant Inc. Chippewa Falls site selected for processing plant
Posted: June 6, 2008
A Canadian company that specializes in collecting sand that will ultimately be used in oil products announced late last week that it will build a $30 million, 80,000-square-foot facility on the northeast side of the City of Chippewa Falls.
Canadian Sand and Proppant Inc., which is purchasing a 93-acre parcel located south of County Trunk S, near the Highway 124 and "Four Corners" intersections, plans to begin construction later this summer. The Chippewa Falls City Council this week approved a resolution that allows for issuance of $20 million in industrial revenue bonds so the company can take advantage of a lower municipal interest rate.
"About eight months ago, they contacted us while they looked at several sites in West Central Wisconsin," said Chippewa County Economic Development Corp. (CCEDC) President and Executive Director Charlie Walker, who added that the firm will initially employ about 20 people and the annual payroll at the plant could eventually be close to $1 million.
Canadian Sand and Proppant Inc., which has formed an American corporate entity that will own the facility, will collect sand primarily from farmers in Chippewa and Barron Counties and then ship the product by rail to Canada, Western Texas and Wyoming. The Chippewa Falls operation will consist of four separate facilities that will store and dry the wet sand.
According to Walker, the $30 million construction project will create an additional $60 million impact to the local economy.
"There is a multiplier effect that shows a construction project will become three times the original investment within a three-year period because of the other industries who will benefit,"he said.
"The whole project centered on the availability to rail and road access. We had the rail in place that is operated by Progressive Rail," added Walker. Approximately 70-80 rail cars will leave the plant daily.
Eventually, the company may begin a second phase that would involve construction of a $7 million facility to treat the sand with a resin needed for the production of oil.
The City of Chippewa Falls, which has already annexed the proposed site and zoned the parcel for heavy industrial use, will likely create a tax incremental finance district to assist with infrastructure improvements.
The development site is owned by Triple T Farms, Louis Hebert and Ted, Tom and Tony Bowe. TBL