Montreal

McInnis Cement CEO resigns amid $450M in overruns

The head of a Quebec cement company has stepped down amid financial difficulties involving a province-backed project in the province's Gaspé region.

Economy Minister Dominique Anglade said company had to 'review its management' after cost overruns revealed

A recruitment process is already underway to replace Christian Gagnon as CEO of McInnis Cement. (Radio-Canada)

The head of a Quebec cement company has stepped down amid financial difficulties involving a province-backed project in the province's Gaspé region. 

Christian Gagon's departure, announced Tuesday, comes after it was revealed McInnis Cement's $1.1-billion Port-Daniel-Gascons project was $450 million over budget.

The project has received $450 million in public funds, including $100 million from both the province's investment arm and the Caisse de dépôt et placement du Québec.

After the disclosure of the additional costs in June, Quebec Economy Minister Dominique Anglade said in a Radio-Canada interview the company needed to "review its management."

McInnis Cement declined to provide the specific reasons behind Gagnon's resignation, but said in a news release that recruitment was already underway to find a replacement. 

The company said it has made a series of changes to "strengthen project management and finish construction" on the cement plant.

Ronald Bougie, an executive vice-president at McInnis, will take the reins of the company until Gagnon's successor is named.

With files from Radio-Canada