A U.S. company has cancelled plans to build a $350-million US canola-crushing plant in Saskatchewan.

When Ceres Global Ag Corp. announced the project a year ago, it said it was going to create about 50 permanent jobs and process 1.1 million tonnes of canola annually. 

It was going to be built by 2024 in Northgate, about 275 kilometres south of Regina, near the U.S. border.

On Friday, citing inflationary pressures and shifting economic conditions, Ceres said it will "pause" the project.

The company says it has already cancelled an equipment design-and-supply contract, and because of that it will take a financial hit of at least US$25 million.

It says it's still looking at some kind of canola-crushing plant in the future, but there's no guarantee that's going to happen.

In another development, both Cargill and Viterra have also announced plans to build canola-crushing plants in Saskatchewan.

CBC asked the Saskatchewan government for a response and received a written statement.

"Although we are disappointed with the news today from Ceres Global Ag Corp., we remain confident in our investment climate and economic future," the statement from Trade Minister Jeremy Harrison's office said.

"Saskatchewan has seen strong economic growth and job creation recently, is leading the nation in several economic indicators, and has welcomed over $14 billion in investments announced across a range of sectors."

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