Following its merger with Aphria, marijuana producer Tilray Inc. is shutting down its flagship facility in Nanaimo, British Columbia to save money. 

“Tilray will be closing its office and facility in Nanaimo, BC. With the recent business combination with Aphria, Tilray is making changes to optimize operational efficiencies,” said the company via email.

Managed in phases, the closure is anticipated to be completed in spring 2022. The closure will put hundreds of people out of work.

“We will work with employees interested in transitioning and seeking opportunities at our nearby facility at Broken Coast on Vancouver Island,” Tilray said. The company will concentrate its international production and manufacturing in Portugal and Germany.

“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,” according to the Tilray statement.

When Tilray merged with Aphria earlier this year, the company expected to achieve cost savings of 100 million Canadian dollars ($77 million) annually. For the fiscal year ending May 31, Tilray reported a loss of CA$422 million.