BC government provides $7.5M towards new 293,000 sq ft Surrey dairy plant

BC government provides $7.5 million towards new 293,000 sq ft Surrey dairy plant

Artistic rendering of 3288 194th Street, Surrey. (Quarry Rock Developments)

With the help of the provincial government, the business behind Nanak Foods-branded products will be building a massive new dairy plant in Surrey.

Up to $7.5 million will be coming from BC’s Manufacturing Jobs Fund for the project by Punjab Milk Foods, which already has its headquarters and plant facilities in Surrey.

The new plant will consolidate the company’s existing facilities, with the government funding supporting a production line, packing, and storage equipment. This will result in less waste and increase efficiency and production capacity.

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The existing main facility in a 2007-built building at 6308 146 Street — located in South Newton next to a residential neighbourhood — provides the company with about 56,000 sq ft of space.

The new 293,000 sq ft facility under construction will be at 3288 194th Street in Surrey’s Campbell Heights industrial park, and it will not only consolidate existing facilities but also provide expansion. It is being developed by Quarry Rock Developments and is expected to reach completion in 2025.

“Our government’s support for homegrown companies to upgrade and modernize operations is building strong local economies across our province,” said Brenda Bailey, BC Minister of Jobs, Economic Development and Innovation, in a statement.

“We’ll continue working together with industry to encourage the long-term growth that brings new, sustainable jobs for all British Columbians.”

3288 194th Street Surrey Quarry Rock Developments Punjab Milk Foods Nanak Foods

Artistic rendering of 3288 194th Street, Surrey. (Quarry Rock Developments)

Up to 50 full-time jobs will be created for the new plant project, and over 250 existing full-time employees will also benefit from the expansion with new training and growth opportunities. Nanak Foods products are currently sold in over 14 countries.

The company will also provide an on-site childcare facility to support its workforce of mainly female employees.

The provincial government has set aside $180 million for its Manufacturing Jobs Fund, with the program accepting proposals starting in February 2023 and will remain open to proposals for about two years or until all funds are allocated.

The maximum funding amount is $10 million, with the requirement that total eligible capital project costs should be up to $100 million.

The fund can cover up to 20% of total eligible capital project costs, such as building expansion construction, upgraded equipment and machinery for product lines, new innovative processes to manufacture forestry products from biomass or other alternatives, retrofits to a processing facility to adopt new technology and processes, and improvements for fabrication processes.

Including the funding to Punjab Milk Foods, the provincial government has so far allocated a total of about $20 million towards 17 different projects, with the dairy plant project receiving the second highest allocation to date.

The highest allocation so far is $10 million to Massive Canada’s 91,000 sq ft manufacturing plant in Williams Lake to build pre-fabricated laneway homes, apartment units, townhouses, and commercial projects using mass timber.

“The BC Manufacturing Jobs Fund is more than just financial support, it’s crucial to helping us reach our vision, a recognition of the significance of what we do, and an investment in our community,” said Gurpreet Arneja, president and co-founder, Punjab Milk Foods.

“Our expansion project allows us to modernize our operations and produce more food locally, while creating jobs and opportunities for our dedicated team to grow with us.”

All of this comes at a time when businesses requiring industrial lands for at least a portion of their operations are facing rising costs due to an immense shortage of suitable industrial space in Metro Vancouver. This has led to the weakened viability of certain types of businesses in the region.

According to a 2023 study supported by the Greater Vancouver Board of Trade, the challenging industrial space conditions in recent years have pushed about 5.1 million sq ft of industrial businesses to Calgary, including companies that have left the region and companies that have preferred to invest in Vancouver but were forced to choose Calgary. It is estimated the economic impact to Metro Vancouver is a loss of 6,300 direct jobs, $477 million in wages, and nearly $500 million in GDP. The average salary per job is over $75,000 annually — well above the average provincial salary of $54,700.

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