N.S. steel manufacturing plant to close after $56M investment

TRENTON, N.S. -- A steel manufacturing facility in northeastern Nova Scotia that received $56.3 million in provincial money is shutting down, ending an ambitious plan to create hundreds of jobs in the wind energy sector.

See Full Article

Business Minister Mark Furey said Friday that the board of directors for DSME Trenton, known as DSTN, had informed government the company is ceasing operations permanently.

"DSTN's future prospects have not improved over the past year, and the domestic wind tower market is well below expectations," Furey said in a statement.

"Government has few options except to prevent the risk of further loss while ensuring all assets are returned to Nova Scotians."

Furey said that after more than five years in business, DSTN did not make money on any contracts or achieve job targets.

He said DSTN has indicated it has several million dollars in cash, equipment and property, which could "minimize the potential cost to taxpayers for any environmental cleanup or receivership fees."

Furey said that with the province as the primary secured creditor, it will file for receivership to try to recover as much of its investment as possible.

Trenton Mayor Glen MacKinnon said the closure of the plant that dates back to the late 1800s is a big blow to the community of about 2,600 people.

"Obviously, it is not good news for the town," he said. "It means less jobs in Pictou County. Any economic hit to our area is very concerning and we will try as hard as we can to bring new a new entity into that facility."

The company has indicated it has no customer orders, is operating in a maintenance mode with 19 employees and is paying about $400,000 a month to stay open.

The decision to close comes less than a month after the province said it wouldn't put any more public money into the manufacturing plant that had hoped to develop the capacity to produce 250 wind turbine towers and 200 blade sets per year.

At the time, the company said it was trying to secure orders in heavy steel fabrication in the wind, oil and gas and rail sectors.

The previous NDP government announced in 2010 it had taken a 49 per cent equity stake in the firm, committed $60 million to the manufacturing plant and predicted 500 jobs would be created within three years.

DSTN told government it cannot start payment on the repayable loans, which was scheduled to begin in early 2018.


Latest Economic News

  • Canadian malls need to diversify to become destinations for shoppers, say experts

    Economic CTV News
    MONTREAL -- The rise of online shopping is forcing Canadian malls to diversify and become destinations that offer a range of services including entertainment and sporting venues in addition to traditional clothing stores, a Montreal real estate conference heard Tuesday. Source
  • Quebec says it's on track for $2.2-billion surplus in current fiscal year

    Economic CTV News
    Quebec is projecting a higher than expected surplus of $2.2 billion in the current fiscal year and is also abolishing a health tax two years ahead of schedule. Information available over the summer led the government to call for a surplus of $1.8 billion for fiscal 2016-17, which ends next March 31, but Finance Minister Carlos Leitao said Tuesday that provincial revenues have increased more than expected. Source
  • Pipeline company asks protesters to leave North Dakota land

    Economic CTV News
    CANNON BALL, N.D. - The developer of the Dakota Access oil pipeline said Tuesday that the dozens of protesters who have camped on company-owned land since the weekend are trespassing and that "lawless behaviour will not be tolerated. Source
  • Red ink will rule, but optimism in the oilpatch as earnings released

    Economic CBC News
    Precision Drilling announced some full-on good news last week with its third-quarter earnings. Although the company lost $47 million in the third quarter and revenue was down by nearly a half, it also said that it had rehired 1,000 workers. Source
  • CN Rail slightly raises outlook for 2016 despite dip in Q3 profits, revenues

    Economic CTV News
    MONTREAL -- Canadian National Railway Co. boosted its earnings forecast for 2016 despite seeing its profits and revenues decline in the third quarter. The Montreal-based railway raised it outlook for the year, saying it expects adjusted earnings will increase by about one per cent above the $4.44 per share earned last year. Source
  • CN Rail recalls workers to prepare for the smooth handling of bumper grain crop

    Economic CTV News
    MONTREAL -- Canadian National Railway Co. says it has recalled laid-off employees to handle the start of what is expected to be bumper grain crops in Canada and the United States. "We're handling and ready to handle more of the crop that has been produced," chief operating officer Mike Cory said Tuesday after the Montreal-based carrier reported third-quarter results. Source
  • Former Expos owner, Seagram's titan Charles Bronfman reflects on life as a 'late bloomer'

    Economic CTV News
    He steered Seagram's Co. Ltd. to great success and brought the Montreal Expos to Canada, but Canadian billionaire Charles Bronfman insists he was a "late bloomer," after years of struggling with low self-esteem in his early life. Source
  • iPhone 7 sales, holiday outlook in focus as Apple reports after the bell Tuesday

    Economic CBC News
    Apple Inc. will report fourth-quarter and full-year earnings after the close of trading Tuesday, with analysts expecting the tech giant to report a third straight quarterly revenue drop and its first drop in annual revenue in 15 years. Source
  • Apple iPhone sales drop for 3rd-straight quarter, but still top expectations

    Economic CBC News
    Apple Inc. will report fourth-quarter and full-year earnings after the close of trading Tuesday, with analysts expecting the tech giant to report a third straight quarterly revenue drop and its first drop in annual revenue in 15 years. Source
  • Trilogy estimates pipeline spill at 250,000 litres of oil and water

    Economic CTV News
    CALGARY - Trilogy Energy Corp. estimates a leak from its pipeline in west-central Alberta released 250,000 litres of oil and water before it was discovered in early October. The company announced the preliminary estimate Tuesday, the same day the Alberta Energy Regulator formally launched an investigation of the spill 16 kilometres northeast of Fox Creek, Alta. Source