NS: Former TrentonWorks site gets new lease on life

[TRENTON, NS] — The province of Nova Scotia and Daewoo Shipbuilding and Marine Engineering Ltd. (DSME) have struck a deal which will resurrect the former TrentonWorks site.

DSME plans to establish a wind turbine tower and blade manufacturing facility at the site, creating hundreds of jobs. The province is investing almost $60-million and getting an equity stake in the Pictou County operation.

“Today is an exciting day, because this partnership will help create the secure jobs our economy needs, employing up to 500 Nova Scotians within three years,” said Premier Darrell Dexter. “This new facility will also showcase and develop Nova Scotia’s leadership in renewable energy and the green economy.”

Premier Dexter also noted that the agreement will have immediate benefits, with about 120 staff employed within the first year of operation and additional indirect jobs and spin-off benefits for the local community and the province.

DSME and the province are signing a shareholders agreement and committing to an equity investment. DSME is contributing $20.4 million and will hold 51 per cent of the common shares and the province is contributing $19.6 million and will hold 49 per cent of the common shares. The province will also have representation on the board of directors.

Through the Industrial Expansion Fund, the province is providing start-up financing — a $30-million loan for new equipment, a loan of up to $6 million for working capital, and a $4-million forgivable loan to acquire land and buildings.

“This agreement is expected to support DSME’s strategy of diversification into the wind-energy sector and expansion into the North American market,” said Mr. Nam, president and CEO of DSME. “We hope this announcement becomes the first milestone to establish a renewable energy cluster in Nova Scotia.”

The government of Canada announced that it intends to invest $10 million in the plant.

The investment, through the Atlantic Canada Opportunities Agency, will be a $5-million repayable loan and a $5-million contribution for adjacent land improvements.

The agreement is the result of more than a year of work that began with a memorandum of understanding to explore economic opportunities. The original memorandum was developed by DSME, the departments of Energy and Economic and Rural Development, and Nova Scotia Business Inc.

DSME also announced it signed a memorandum of understanding with Nova Scotia Power for a formal process for the companies to collaborate on developments that help meet renewable generation goals in Nova Scotia. The companies will also focus on potential on-shore wind, tidal energy and offshore wind projects.

In announcing the wind turbine tower and blade manufacturing venture, the province also emphasized that the deal is still in the process of being officially finalized. “It’s important to note that because TrentonWorks is in bankruptcy, several legal steps are necessary before the deal can be completed,” a recent statement read.