Aldergrove marijuana operation one of two major Canopy Growth facilities to close

The company announced 500 job losses on Wednesday

On Wednesday, one of the largest grow operations in the country announced the shuttering of two of its facilities – in Aldergrove and Delta.

Cumulatively, records show a total of 500 people were employed between both locations. All have now lost their employment.

In Aldergrove, Canopy Growth Corp. announced the closure of its 1.3 million sq. ft. marijuana greenhouse complex on 4th Avenue near 264 Street.

“These actions are part of the company’s effort to align supply and demand while improving production efficiencies over time,” Canopy Growth said in a statement.

Nearly 17 months after the creation of the legal adult-use market, “the Canadian recreational market has developed slower than anticipated, creating working capital and profitability challenges across the industry,” it continued.

RELATED: Aldergrove cannabis greenhouse target of noise complaints

Both operations were first up and running in February of 2018, and accounted for approximately 3 million square feet of licensed production space.

In recent years, the Aldergrove facility has come under fire from nearby residents bothered by its bright lights, odours, and noise emanating from the 30-acre operation.

CEO David Klein said the decision to downsize “was not taken lightly” and “is a necessary step to ensure that we maintain our leadership position for the long-term.”

Federal regulations permitting outdoor cultivation were introduced after Canopy Growth made significant fiscal investments in Canadian greenhouse production, it said.

Canopy Growth plans to refine its efforts to focus on outdoor production sites, which in turn, will be of less cost for the company – which operates 11 licensed cannabis production sites with over 4.7 million square feet of production capacity.

In addition to Wednesday’s closures, the company announced it no longer plans to operate a third greenhouse as planned in Niagara-on-the-Lake, Ontario.

READ MORE: Three million sq. ft. of marjiuana growing capacity in B.C.

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