Kal Tire puts brakes on new proposed plant in Regina citing cost, timing

REGINA – Kal Tire is changing gears and putting the brakes on a $25 million proposal for a new distribution facility in Regina.

John Mullin, senior vice-president purchasing and marketing for Kal Tire, says the company has decided it’s more cost effective to expand an existing facility in Edmonton.

The company says in a new release that the Saskatchewan government, the city and a nearby rural municipality all got behind the project.

But it says in spite of those efforts, a critical deadline was missed in order to be ready for the 2014 winter rush season.

There was some disagreement between the levels of government over the development plan.

Mullin says in the long term, Kal Tire still intends to find a larger warehouse in the Prairies to support future growth.