The plant will be built on a 27-acre site in Guelph, Ontario and is expected to open in three years.
Cargill said the facility will serve food processing customers in the south-western Ontario market and will bring 15 to 20 new jobs to Guelph.
The move will increase Horizon Milling’s Canadian production by around 30%.
Cargill chose to withhold the cost of the investment and refused to provide information on Horizon Milling’s targets for growth in the future.