Sturgeon Lake's chopstick factory closed by investors

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The $3 million chopstick factory at SturgeonLake reserve in northern Alberta has been closed by foreign investors, who fear the operations is not meeting their standards.

But the vice-president of the Valleyview Economic Development Board insists the Native businessmen are only going through growing pains.

Al MacGregor believes it's just a matter of time before the plant is in full swing again.

MacGregor told Windspeaker the investment firm from Harbin, China, which tramed with Cree Valley Industries Ltd. last year to produce chopsticks for the Japanese market, had serious concerns about the plant's operations.

He expects a business assessment plan by Chinese specialists to put the venture back on track.

"They're just going through teething problems. It's the same with any new business," he said.

"It still looks like a viable and very profitable operation. It just needs to be reassessed."

MacGregor said the Valleyview Economic Development Board was instrumental in helping Sturgeon Lake Band come up with the business plan for the factory, which was expected to turn out 15 million disposable chopsticks each day.

But during a routine visit last month, Chinese engineers from Harbin discovered the plant's Canadian-made machinery was not suitable for producing the desired amount chopsticks. MacGregor said they also insisted the plant was overstaffed.

Sturgeon Lake Chief Ron Sunshine would not comment on the closure but did say a news conference would be held in Edmonton April 17 to announce the band's next move.

The 8,000 square-foot factory offered more than 60 full-time positions to area band members.

After two years of business negotiations, Cree Valley opened its chopstick factory last summer with a $1 million investment from Hightech Corporation of China and $600,000 from the Aboriginal Economic Development Program. The rest came from the band.

Stephen Shang, Cree Valley's general manager, could not be reached for comment.