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.



Advertisements

Latest Economic News

  • Air Miles raises cap on in-store redemptions

    Economic Toronto Sun
    TORONTO — Air Miles is raising some of the recent daily limits imposed on redeeming miles for in-store purchases from retailers. The customer loyalty program says the new daily limit on Air Miles Cash redemptions, in most cases, has been raised to $100. Source
  • Disgruntled U.S. Tim Hortons franchisees follow Canadian example, form alliance

    Economic CTV News
    TORONTO - A group representing Tim Hortons franchisees who are unhappy with the management of the coffee-and-doughnut chain says it now has a U.S. chapter, a development that could put further pressure on the parent company. Source
  • Canada, China sign no-hacking agreement designed to protect trade secrets

    Economic CTV News
    OTTAWA -- Canada and China have agreed not to engage in state-sponsored hacking of each other's trade secrets and business information. The two countries reached the agreement during a meeting last week that was part of their new high-level national security dialogue. Source
  • Coal on the rise in China, U.S., India after major 2016 drop

    Economic CTV News
    BEIJING -- The world's biggest coal users -- China, the United States and India -- have boosted coal mining in 2017, in an abrupt departure from last year's record global decline for the heavily polluting fuel and a setback to efforts to rein in climate change emissions. Source
  • Ontario needs innovative skills and apprenticeship training:study

    Economic CTV News
    TORONTO - A new study concludes that Ontario needs to get far more creative in order to properly prepare young people for jobs of the future. The study was commissioned by the Ontario Skilled Trades Alliance which represents companies that employ more than 400,000 skilled trades people across the province. Source
  • Air Miles raises cap on in-store redemptions effective Monday

    Economic CTV News
    TORONTO - Air Miles is raising some of the recent daily limits imposed on redeeming points for in-store purchases from retailers. The customer loyalty program sent notices during the weekend that says the new daily limit on Air Miles Cash redemptions, in most cases, has been raised to $100. Source
  • Portugal airline chief fears increasing drone near-misses

    Economic CTV News
    LISBON, Portugal -- Portugal's national airline chief said Monday he is considering asking authorities to order that all drones in the country be grounded, following a series of near-misses with commercial aircraft. If drones "keep entering airspace, we're going to call for them to be grounded," TAP Air Portugal President Fernando Pinto said. Source
  • Garbage piles mount in Greek capital as heatwave looms

    Economic CTV News
    ATHENS, Greece -- With a heat wave expected later this week, Greece's government on Monday failed to persuade striking garbage collectors to return to work after a 10-day protest left huge piles of trash around Athens. Source
  • Advice for retirees who must answer the question: Buy, sell or rent?

    Economic CTV News
    It wasn't that long ago when the outlook for retirees focused on baby boomers downsizing and moving into smaller homes in the country -- trading an urban lifestyle with a relaxing, rural retirement. Fast forward 20 years, and many retirees are opting to stay in their homes for longer: renovating, upgrading and improving accessibility along the way. Source
  • Shkreli defies advice to keep quiet before fraud trial

    Economic CTV News
    NEW YORK -- "Pharma Bro" just won’t keep his mouth shut. Even with his federal securities fraud trial set to begin Monday, Martin Shkreli has blatantly defied his attorneys’ advice to lay low. The former pharmaceutical CEO, who became a pariah after raising the cost of a life-saving drug 5,000 per cent, has been preening for cameras and trolling on social media, potentially complicating his defence. Source