A Canadian cannabis giant that shut down more than half its marijuana cultivation facilities and significantly slashed jobs last week is still moving forward with a hemp production facility in New York state.
Canadian-based Canopy Growth closed two production facilities in British Columbia and laid off 500 employees there.
But construction work continues on an industrial hemp processing facility Kirkwood, New York, where workers are renovating the former vacuum-cleaner production plant, the Binghamton Press & Sun-Bulletin reported.
Canopy Growth CEO David Klein said that closing the closing the two British Columbia facilities “is a necessary step to ensure that we maintain our leadership position for the long term.”
Canopy Growth did not immediately respond to Hemp Industry Daily questions about the Kirkwood facility, which would be the company’s first in the U.S.
The company has said it does not plan to grow hemp in New York, but rather will make agreements with farmers to supply the processing plant – and New York farmers will receive priority.
Canopy has said it expects its New York operations to include roughly 2,000 acres of hemp.