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

  • Spat breaks out between Tim Hortons franchisee factions over public complaints

    Economic CBC News
    The Tim Hortons franchisee advisory board is slamming a group representing at least half of the brand's restaurant owners for publicly making complaints about their parent company Restaurant Brands International Inc. In a letter to franchisees obtained by The Canadian Press, the board argues that the comments by the Great White North Franchisee Association criticizing the company in the media and to the federal government is corrosive and damaging to the Tim Hortons brand. Source
  • Acacia Mining production drops 45 per cent as Tanzania troubles persist

    Economic CTV News
    TORONTO -- A subsidiary of Toronto-based Barrick Gold Corp. says gold production at its Tanzanian operations plunged 45 per cent last quarter as it grappled with export restrictions from the country. London-based miner Acacia Mining, owned 64 per cent by Barrick, says the drop in production resulted from reduced operations at its Bulyanhulu mine and producing mostly from lower-grade stockpiles at its Buzwagi mine. Source
  • Supreme Court beer ruling could apply to Alberta-B.C. pipeline war, experts say

    Economic CTV News
    CALGARY -- A Supreme Court of Canada ruling on bringing beer from Quebec into New Brunswick has implications for the trade war between Alberta and B.C. over the Trans Mountain pipeline expansion. Experts say the court seems to be addressing the issue in its decision when it notes that while some trade barriers can be allowed in some circumstances, those designed to punish another province or to protect a local industry would not be permissible. Source
  • High cost of dental services prompting some patients to seek alternative options

    Economic CBC News
    An unaffordable price tag kept Melanie Laxson out of the dentist's chair until the pain became unbearable. With no access to insurance, the 38-year-old says there's no way she could afford the full cost of a dentist. Source
  • Canadian airline profits will fall in 2018 on higher costs: Conference Board

    Economic CTV News
    MONTREAL - The Conference Board of Canada says the growth of the country's airline industry will slow in 2018 as profits are forecast to decrease from last year's peak primarily because of higher fuel and labour prices. Source
  • Commodities volatile on $100 US oil talk

    Economic CBC News
    Talk that Saudi Arabia has its sights on $80-$100 US a barrel oil again and of more U.S. sanctions on Russia ignited a rally in commodities and resource stocks on Thursday, though the potential boost to inflation hit fixed-income assets. Source
  • Commodities rollercoaster on $100 US oil talk, sanctions stress

    Economic CBC News
    Talk that Saudi Arabia has its sights on $80-$100 US a barrel oil again and of more U.S. sanctions on Russia ignited a rally in commodities and resource stocks on Thursday, though the potential boost to inflation hit fixed-income assets. Source
  • 'Pharma Bro' arrives at low-security federal prison

    Economic CTV News
    FORT DIX, N.J. -- The pharmaceutical-industry entrepreneur vilified for jacking up the price of a life-saving drug has been placed in a low-security federal prison in New Jersey. Martin Shkreli was moved Tuesday from the Brooklyn Metropolitan Detention Center in New York to the Federal Correctional Institution at Fort Dix. Source
  • 'Pharma Bro' moves to New Jersey for federal prison stay

    Economic CTV News
    FORT DIX, N.J. -- The pharmaceutical-industry entrepreneur vilified for jacking up the price of a life-saving drug was moved Tuesday to a low-security federal prison in New Jersey. Martin Shkreli was sent from the Brooklyn Metropolitan Detention Center in New York to the Federal Correctional Institution at Fort Dix. Source
  • WestJet to 'accelerate' inspections after deadly Southwest engine explosion

    Economic CTV News
    WestJet plans to speed up required inspections on its fleet of Boeing 737-700 jets, following an engine explosion on a Southwest Airlines flight that killed one passenger. A spokesperson for the Calgary-based carrier said only a “small portion” of its aircraft have the engine fan blades currently under investigation by the U.S. Source