A plant that aims to turn hemp into products like home insulation and animal bedding has received $4 million in loans from the Manitoba government.

The facility near Dauphin, owned by Parkland Biofibre, is expected to turn over 23 metric tonnes of hemp straw into such products every year when it's operational.

It will be just one of a handful of plants around the world processing industrial hemp.

Stan Struthers, the province's conservation minister, says it's a unique opportunity to be at the forefront of the trade in biofibre.

Rosann Wowchuk, Manitoba's agriculture minister, says the provincial government is building on the province's agricultural strengths with this investment.

The $20 million facility should take about two years to build, once all the financing is in place.