Quebec government says it won’t invest further in McInnis Cement plant

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Canada The Quebec government has said that it has no plans to invest further into the McInnis Cement plant on the Gaspé Peninsula. Dominique Anglade, the province's Economy Minister, said on 29 July 2016 that she was confident that the US$854m project would be profitable and there will be no further investment on the part of the government, according to the Globe and Mail newspaper. Key investors, including the Bombardier-Beaudoin family and the Caisse de dépôt et placement du Québec, are facing additional costs of up to US$350m, according to sources cited by the newspaper.

The provincial government says it has taken action since learning of the cost overrun, including securing guarantees regarding the financial package needed in the short term to ensure completion of the project. Other unspecified ‘additional conditions’ have also been attached to the government's financial contribution. Quebec is a major equity partner in the project, with a US$78m investment. It also provided a US$194m loan on commercial terms.

The cement plant has a planned launch of operations set for spring 2017.

Last modified on 05 July 2016

URL: https://globalcement.com/news/item/5048-quebec-government-says-it-won-t-invest-further-in-mcinnis-cement-plant

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