CALGARY, Alta—Canola oil manufacturer Clean Power Concepts Inc. (CPC) has announced plans to liquidate a joint venture with Chinese state-owned firm Chongqing Grain Group, claiming numerous breeches of the agreement.
Calgary-based CPC is also filing a statement of claim against Chongqing Grain Group, seeking damages of between $70 million and $100 million.
CPC CEO Michael Shenher said in a release that many instances negligence, abandonment and breaches of numerous points of the joint venture agreement caused irreparable and substantial financial harm to the CPC and its shareholders.
“Their breaches in this matter have been extremely costly; in terms of expenditures, lost revenue, lost profit, and lost technology licensing fees. The lost market capitalization, share value, and the opportunity costs are almost incalculable,” said Shenher.
The joint venture, established in 2012, resulted in new company Pan Pacific Green Food Inc., which was mandated to establish agricultural processing operations in Western Canada, and the North Western U.S.