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

  • Union representing 2,000 Quebec workers unsure about CSeries Airbus deal

    Economic CTV News
    MONTREAL -- Quebec workers with Bombardier's CSeries plane program have mixed feelings about the deal with Airbus giving the European aerospace giant a controlling stake in the aircraft, a union representative said Tuesday. David Chartrand, Quebec co-ordinator for the International Association of Machinists and Aerospace Workers, said the deal means access to a massive market and possibly more jobs. Source
  • Sears Canada's registered retirement plan appoints new administrator

    Economic CTV News
    VANCOUVER -- Morneau Shepell is taking over administration of Sears Canada Inc.'s registered retirement plan. The Financial Services Commission of Ontario says in a statement that the Ontario Superintendent of Financial Services appointed the human resources consulting and technology company after a competitive tendering process. Source
  • Liberals to narrow scope of passive-income measure for private corporations

    Economic CBC News
    The federal government is moving to pare down its controversial tax proposal on passive income so that it will only affect three per cent of private corporations. Finance Minister Bill Morneau will be in New Brunswick on Wednesday to unveil changes to his passive investment proposal so that it only targets unfair tax advantages used by the wealthy, a senior government official told The Canadian Press. Source
  • Freeland calls U.S. NAFTA demands 'troubling' and 'unconventional'

    Economic CBC News
    Foreign Affairs Minister Chrystia Freeland accused the United States of deliberately trying to undermine the North American Free Trade Agreement, calling its list of unconventional proposals "troubling." Her remarks came during a tense joint news conference as the fourth round of NAFTA talks wrapped up in Arlington, Va. Source
  • Veteran investor booted from Sprott board after racist comments

    Economic CTV News
    TORONTO -- Veteran investor Marc Faber was asked to resign from the board of directors at Sprott Inc. after comments he made in his investment newsletter that America was better off because it was settled by white people instead of black people. Source
  • Veteran investor Marc Faber booted from 3rd company after racist comments

    Economic CTV News
    TORONTO -- Veteran investor Marc Faber has resigned his board seats at three companies based in Canada on Tuesday following comments he made in his investment newsletter that America was better off because it was settled by white people instead of black people. Source
  • Missouri appeals court tosses $72M US award in talcum powder case

    Economic CBC News
    A Missouri appeals court on Tuesday that vacated a $72 million US award to an Alabama woman who claimed her use of Johnson & Johnson products that contained talcum contributed to her ovarian cancer has thrown the fate of awards in similar cases into doubt. Source
  • Latest NAFTA round ends in a stalemate with plans to extend talks into 2018

    Economic CTV News
    WASHINGTON -- U.S. Trade Representative Robert Lighthizer says NAFTA talks are being extended into 2018 -- a tacit admission that negotiators aren't going to meet their original deadline for a deal by year-end. The proposals tabled at the latest round have revealed huge chasms in negotiating positions, on everything from dairy and autos to even the basic architecture of an agreement -- and the tone of Tuesday's news conference made clear the talks have turned downright frosty. Source
  • Veteran investor Marc Faber booted from Sprott board after racist comments

    Economic CBC News
    Veteran investor Marc Faber was asked to resign from the board of directors at Sprott Inc. after comments he made in his investment newsletter that America was better off because it was settled by white people instead of black people. Source
  • White House says Fed search down to 5 finalists

    Economic CTV News
    WASHINGTON -- A White House official says U.S. President Donald Trump has narrowed his search for the next Federal Reserve chairman to five final candidates. A decision is expected before the president begins a trip to Asia on Nov. Source