Biox Corp. has terminated plans for a new biodiesel production facility in New York Harbor.
The Toronto-area company says the market dynamics have changed significantly since it signed a land lease agreement with International-Matex Tank Terminals.
As a result of the decision, IMIT will reimburse two-thirds of the $2.1-million (U.S.) upfront payment made by Biox.
Biox will record the remaining $700,000 as an expense in its fiscal first quarter.
The Oakville-headquartered company says it believes the challenges affecting the biodiesel market in 2012 are short-term.
Biox chief executive officer Kevin Norton says the company remains confident in the value of its production facility in Hamilton, Ont.