Canopy Growth settles on New York hemp site, will start building this summer

Canadian marijuana giant Canopy Growth has chosen a small New York town near the Pennsylvania border as the site for its $150 million entrance into the U.S. hemp market.

Canopy announced Monday it will build an industrial park on a 48-acre property in Kirkwood, New York, about 5 miles north of the Pennsylvania border.

The property includes a 308,000-square-foot facility.

Canopy said it will begin construction this summer on facilities for hemp-derived cannabinoid extraction “and related manufacturing.”

In January, the company announced plans to spend up to 200 million Canadian dollars ($148 million) developing the hemp park.

Canopy Growth CEO Bruce Linton said in a statement that the New York industrial park could one day also be home to “like-minded businesses who share our excitement for the emerging hemp and hemp-derived cannabinoid markets.”

The company said it does not plan to grow hemp in New York, instead making agreements with farmers to supply the plant with priority given to New York state farmers.

Canopy Growth trades on the New York Stock Exchange as CGC.