Cannabis producer Tilray closing Nanaimo offices and cultivation facility after merger

Vancouver -

A major cannabis producer on Vancouver Island is closing its Nanaimo office and cultivation facility, citing "operational efficiencies" after a recent merger.

Tilray has been a major employer in Nanaimo since 2014, but the company's recent merger with fellow cannabis giant Aphria has left it looking to "optimize operational efficiencies," according to a statement from Tilray.

"By focusing local cultivation and manufacturing at the remaining sites across Canada, Tilray will be able to operate more efficiently, save costs, and deliver the highest-quality products to its patients and consumers all while driving growth and shareholder value," the company said.

The closure of the Nanaimo facility will happen in phases, and Tilray expects it to be completed by spring.

The company's remaining operations on Vancouver Island will be concentrated in its Broken Coast subsidiary. 

"We will work with employees interested in transitioning and seeking opportunities at our nearby facility at Broken Coast," the company said.

Nanaimo Mayor Leonard Krog issued his own statement in response to Tilray's departure, saying he is "very disappointed."

"We are mindful that employees and others will be seriously impacted by the closures," Krog said. "However, I am confident that given our demand for industrial lands, Nanaimo will welcome a new and significant employer soon."

In addition to Broken Coast, Tilray and Aphria have three other cannabis cultivation and manufacturing facilities in Canada, all in Ontario, as well as operations in Portugal and Germany.