Ceres cancels $350M US canola-crushing plant planned for Saskatchewan

An American company has canceled plans to build a US$350 million canola crushing plant in Saskatchewan.

When Ceres Global Ag Corp. announced the project a year ago, it said it would create about 50 permanent jobs and process 1.1 million tonnes of canola annually.

It was to be built by 2024 at Northgate, about 275 kilometers south of Regina near the US border.

On Friday, citing inflationary pressures and changing economic conditions, Ceres said he would “pause” the project.

The company claims that it has already canceled an equipment design and supply contract and because of this, it will suffer a financial hit of at least US$25 million.

He says he’s still considering some sort of canola crushing plant in the future, but there’s no guarantee that will happen.

In another development, Cargill and Viterra also announced plans to build canola crushing plants in Saskatchewan.

The province is disappointed

CBC requested a response from the Saskatchewan government and received a written statement.

“While we are disappointed with today’s news from Ceres Global Ag Corp., we remain confident in our investment climate and economic future,” said the statement from the office of Trade Secretary Jeremy Harrison.

“Saskatchewan has recently experienced strong economic growth and strong job creation, leads the country in several economic indicators and has welcomed more than $14 billion in announced investments in various sectors.

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