Ontario Fund Writes Down $400 Million Investment in Northvolt
Investment Management Corp. of Ontario has written down its $400 million investment in Northvolt AB, the electric vehicle battery maker that filed for bankruptcy protection last year, according to people familiar with the matter.
The Canadian pension manager bought Northvolt convertible bonds in 2023, its largest transaction in Europe at the time. IMCO manages about C$77 billion ($53.8 billion) for public-sector groups in the province of Ontario.
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Hamilton Spectator
an hour ago
- Hamilton Spectator
Minister flags concern over BC Ferries' deal with Chinese state-owned shipyard
British Columbia's transport minister has raised concerns with BC Ferries about its decision to have a Chinese shipyard build four new ferries for its passenger fleet, amid an ongoing trade conflict between Canada and China. The winning bidder on the contract announced Tuesday is Chinese state-owned China Merchants Industry Weihai Shipyards. Mike Farnworth said in a statement he was worried about procuring services from 'any country that is actively harming Canada's economy' with tariffs and protectionism. 'BC Ferries is an independent company responsible for its own operational decisions. While BC Ferries has made its decision to purchase new vessels offshore, I am disappointed more involvement from Canadian shipyards was not part of the contract,' he said. Farnworth's remarks came hours after the announcement by BC Ferries CEO Nicolas Jimenez that the Chinese shipyard had been chosen to build its vessels, with the first expected to come into service in 2029 and the others following in six-month intervals. Jimenez said he wasn't worried about geopolitical tensions between Canada and China, adding his primary focus was getting the province a good deal. 'Customers expect us to go source the best possible deal, (the) highest quality, a yard that provides safety, a yard that provides the highest in standards when it comes to oversight (and) labour, and to get the best cost,' he said at a news conference Tuesday. 'When it comes to things like trade policy, industrial policy, geopolitics, I think we would really defer that to the federal and provincial governments and expect them to manage and work those issues.' He said in a news release that the shipyard was 'the clear choice based on the overall strength of its bid.' It said Weihai Shipyards has built vessels for Canada's Marine Atlantic ferry company and other operators such as Corsica Linea and Brittany Ferries of France. Canada and China are engaged in a trade dispute, with Beijing imposing retaliatory tariffs on Canadian canola and meal, peas and seafood after Ottawa slapped levies on Chinese-made electric vehicles, steel and aluminum. Jimenez said Tuesday that there are currently no tariffs associated with the import of vessels of this type into Canada and tariff disputes didn't factor into the decision. BC Ferries is not releasing the value of the contract other than Jimenez saying it fits within the budget approved by the BC Ferries Commissioner earlier this year. He said releasing the deal before the project is complete could put future procurements at risk. 'To protect BC Ferries and our customers, we've structured the contract in a way that reduces our risk while increasing shipyard accountability. Most of the payment is tied to delivery, and that means the shipyard doesn't get fully paid until the vessels are delivered and meet the rigorous standards that we've laid out in the contract,' he said. 'There are also measures like refund guarantees and fixed price terms that will further protect BC Ferries and our customers.' BC Ferries' head of fleet renewal, Ed Hooper, said no Canadian companies bid on the ships that will carry about 52 per cent more passengers and 24 per cent more vehicles than the ferries they are replacing. Jimenez said 60 per cent of the world's ships are built in China, and BC Ferries did due diligence to make sure it understood the 'technical and delivery and country risks associated with making this decision.' BC Ferries said it will have its own team of experts on-site at the shipyard throughout construction to provide oversight and quality assurance. In a statement, the Opposition BC Conservatives accused Premier David Eby of 'abandoning Canadian workers' by awarding a 'multibillion-dollar' contract to a Chinese state-owned enterprise. The oldest ferry being replaced is the Queen of New Westminster, built in 1964, while the Queen of Cowichan, Queen of Alberni and Queen of Coquitlam all turn 50 next year. BC Ferries had hoped to buy five new vessels and bring its fleet size from 10 to 11 but earlier this year the provincial regulator rejected the pitch, saying a fifth ferry 'is not in the public interest' as it is 'not essential for safe and reliable service and is not fiscally prudent.' The parent company of China Merchants Industry Weihai Shipyards is China Merchants Industry Holdings. The conglomerate's website describes it as a 'centrally administrated state-owned' enterprise with more than a 100 years of history, making it one of the oldest 'Chinese-funded enterprises' in existence. The website says the company is based in Hong Kong and operates nine major shipyards across the Chinese coast as well as overseas subsidiaries and agencies in countries such as Finland and Germany. This report by The Canadian Press was first published June 10, 2025.
Hamilton Spectator
2 hours ago
- Hamilton Spectator
Minister flags concern over BC Ferries' construction deal with Chinese shipyard
British Columbia's transport minister says he has raised concerns with BC Ferries about its decision to have a Chinese shipyard build four new ferries for its passenger fleet, amid an ongoing trade conflict between Canada and China. Mike Farnworth says he's worried about procuring services from 'any country that is actively harming Canada's economy' with tariffs and protectionism. Farnworth's remarks come hours after the announcement by BC Ferries CEO Nicolas Jimenez that China Merchants Industry Weihai Shipyards had won the contract. Jimenez said he wasn't worried about geopolitical tensions between Canada and China, adding his primary focus was getting the province a good deal. Farnworth says in a statement that BC Ferries is an independent company, but he's disappointed 'more involvement from Canadian shipyards' wasn't part of the contract. The first vessel is expected to come into service in 2029 with the others following in six-month intervals. This report by The Canadian Press was first published June 10, 2025.
Yahoo
3 hours ago
- Yahoo
US depends on Canadian oil, despite Trump's comments, Cenovus CEO says
By Amanda Stephenson CALGARY (Reuters) -The U.S. relies on Canadian oil imports, despite comments to the contrary by U.S. President Donald Trump, Cenovus Energy CEO said on Tuesday. Trump has threatened on-again, off-again tariffs on Canada's oil, of which nearly 4 million barrels per day are exported to the United States. Canada is the world's fourth-largest oil producer, and fifth-largest natural gas producer. Trump has previously said the U.S. does not need to import goods, including oil and gas, from Canada. Canada's Prime Minister Mark Carney, who won a minority government in April on a wave of anti-Trump voter sentiment, has said the country's old relationship with the U.S. based on steadily increasing economic integration is over. Jon McKenzie, who heads oil sands company Cenovus and chairs the Canadian Association of Petroleum Producers industry group, said trade tensions between the two nations have highlighted the need for Canada to diversify its exports. But he said that need does not take away from the fact the two countries' energy systems are inextricably linked. "What hasn't changed is energy economics and energy physics. The reality is we are hardwired into the U.S. system," McKenzie said at an energy conference in Calgary, Alberta. Canada depends on U.S. refiners to buy the vast majority of its exported oil, while landlocked U.S. refineries in the Midwest are configured to process the grade of crude that Canada produces. McKenzie said Canada has the opportunity to grow its oil output in the coming decades, and added the country's new government needs to recognize Canada's co-dependence with the U.S. and seek to improve that relationship. "We need to make sure that we don't act viscerally when we're threatened, and that we act intelligently in our long-term interest," he said. As part of its response to the U.S. tariff threat, Carney has pledged to identify and fast-track projects of national interest aimed at helping Canada become what he calls a conventional and clean energy superpower. McKenzie said the oil and gas sector does not want the federal government to pick winners and losers by deciding which projects to fast-track. He said the industry instead wants to see broad regulatory reform that will remove barriers to investing in oil and gas projects. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
