DSTN to close in Nova Scotia after $56 million investment

A steel manufacturing facility in Trenton, N.S., that received $56.3 million in provincial money is shutting down, ending a plan to create hundreds of jobs in the wind energy sector.

According to Business Minister Mark Furey, the board of directors for DSME Trenton, known as DSTN, has informed the government that the company will cease operations permanently.

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. He said he doubts the $36 million in repayable loans will be dispersed, but the province needs to determine the value of the property and its equipment through the receivership process.

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.

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