Over the last couple of years some key announcements focusing on building Saskatchewan's canola crush capacity have been made.
Now there's word one of the five projects is being sidelined.
Ceres Global Ag Corp says it is suspending its plans for a $350 million crush facility at Northgate, near the U.S. border.
"The Corporation’s decision to pause the project is due to a variety of factors, including but not limited to, inflationary pressures resulting in higher costs than initially projected and shifting macroeconomic conditions."
In a press release, Ceres says it has terminated the equipment design and supply contract, which will result in an impairment charge.
The fourth quarter impairment charge in connection with the termination of the Northgate Project is currently estimated to be in the range of $25 million to $30 million.
Ceres Global Ag Corp says it intends to continue to explore avenues to pursue a canola crush project of some form in the future.
The Ceres Northgate canola crush facility was one of five canola crush projects announced for Saskatchewan.
Richardson announced plans to double its crush capacity at Yorkton, while Viterra and Cargill both announced plans to build crush facilities in the Regina area.
Federated Co-operatives Ltd. announced a partnership with AGT Foods for a canola crush facity as part of an agriculture complex that would also feature a biodiesel plant.
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