McInnis Cement CEO resigns amid $450M in overruns
Economy Minister Dominique Anglade said company had to 'review its management' after cost overruns revealed
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.
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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