Aquablue hunts financing for Smiths Falls plant

A bottled-water company that was supposed to take over a former Hershey's chocolate factory in Smiths Falls, Ont., is still hunting formoney to buy the building and the equipment for its production line.

Aquablue International announced in Juneit was taking over the plant and planned to create 200 high-paying jobsby 2011by converting the factory into awater-bottling facility.

That would have replaced some of the 500 jobs lost in Smiths Falls when Hershey shut the plantin 2008. The company plans to bottle 300 million litres of water per year, largely for export.

However,Aquablue presidentDan Villeneuve confirmed that the company hasn't yet completed a lease-to-own agreement with Hershey. Nor has it ordered its equipment.

"We're actively looking to secure all of our financing, especially on the equipment side," Villeneuve said,adding thatthe companyremains committed to getting the plant operational by next June.

Hetook CBC News on a tour, pointing out the places where the company plans to install its processing equipment.

The firmalready has money in the "range"it needs and islooking to obtain the rest, he added.But he saidtalkaboutfinancing could make it even more difficult to find investors.

Hesaid he expects to have a lease-to-own agreement by the end of the year.

Smiths Falls Mayor Dennis Staples told CBC Newshe still believes in Aquablue.

"I'm hopeful and continue to be hopeful that production will occur sometime in 2010," he said.

When asked if the citydid any research to see how viable the company was, Staples responded: "That's not our role. Our role is to welcome new businesses. Our role is not to check out business plans for any business. We don't do that. We simply encourage people to come to Smiths Falls."

Former employee claims$14,000

Tom Ondrejicka, who left his position as Aquablue's former marketing director six months ago, said he's still owed $14,000 from the company and he doubts it will ever reopen the Smiths Falls plant.

He estimated taking over the plant would cost close to $50 million.

"That money's not there," he said.

On the company's website,Aquablue's CEO is listed as Manuel de Silva, whoin the fall was facing a charge of fraud involving another bottled-water company. He agreed to pay $5,000 to another investor and the charge was dropped.