It was a good day in Merritt Friday when a pellet plant that will bring a minimum of 36 jobs to the city got backing from the federal government.

Okanagan-Coquihalla MP Stockwell Day announced federal funding of $2,452,000 through the Community Adjustment Fund for Highland Pellet Manufacturing Ltd.

Highland Pellet, an Ontario-based company with local entrepreneur involvement, will build a wood pellet mill on an industrial site in Merritt.

Mayor Susan Roline, who attended the announcement, called it “very good news” for her community, which has faced some economic struggles.

“We’ve been hit by the beetle kill, although we’ve been fortunate that area mills have been functioning to a pretty good capacity.”

She said anything that creates new employment is always good for the community. This particular manufacturing opportunity provides middle-paying jobs, as well as a new tax base.

Long-time Merritt business people, Rob and Jenny McDonald, initiated the plans for the pellet plant. They approached the federal government for funding and when their application was successful, they were able to find the necessary investors.

The money is provided as a repayable contribution through CAF, as part of Canada’s Economic Action Plant.

“We are pleased to be working with the government of Canada on such an important project,” Rob McDonald said. “Thanks to this funding, Merritt will have a state-of-the-art pellet mill producing pellets from wood waste generated at local sawmills and from surrounding beetle-killed woodlands.”

The mill will have an initial capacity of 32,000 short tons of pellets on a single-shift basis. The plant is expected to hire 36 workers on site and create another 12 jobs in the bush. As the market picks up, it’s hoped job numbers will increase, said the mayor.