REGINA—Clean Power Concepts (CPOW) has signed a $3-million joint venture with Chinese food conglomerate Chongqing Grain Group Co., Ltd.
Regina-based CPOW turns canola seed into oils for animal feed, bioplastics, lubricants and other products.
Under the new agreement, CPOW and its subsidiary, General Bio Energy Inc. will build a 600-metric tonne canola crushing plant in Western Canada.
CPOW will secure canola seed from western Canadian producers. The Chongqinq Grain Group Co. Ltd. will buy all the plant’s output.
The facility location has yet to be determined, but CPOW CEO Michael Shenher said it’ll be near key transportation hubs.
“We are excited about the demand existing in China for canola oil and world wide for off-take canola meal,” Shenher added.
The Chongqing Grain Group Co., Ltd. is located in the Chinese municipality of Chong Qing. It has 21,507 employees and total assets of US$920 million.
It’s just one of many Chinese firms that are looking to invest in Canada over the next three years, according to a survey earlier this year by the Asia-Pacific Foundation, a think-tank on Canadian and Asian relations.
The survey found more than a quarter of companies are planning to enter the Canadian market via joint ventures, mergers and acquisitions.