Sources: Province partners with Daewoo in venture at former TrentonWorks site
Nova Scotia taxpayers will own a piece of a new venture at the former TrentonWorks railcar plant as government sources say the province is taking a 49 per cent equity stake in the operation to be run by South Korean manufacturing giant Daewoo.
The $90-million agreement scheduled to be announced today will see the sprawling seven-hectare factory in Trenton reopened for the first time in three years to manufacture large components for wind turbines, including rotor blades and support stands.
Deputy premier Frank Corbett confirmed Thursday the operation will employ more than 400.
One government source said the final deal was concluded earlier this week between the province, the company and the federal government.
The funding breakdown includes $60 million from the province, which covers the equity stake and other financial incentives including loans. Daewoo will spend $20 million and Ottawa will pitch in the other $10 million, the source said.
The federal component includes a $5 million repayable loan and a $5 million non-repayable loan.
The source said the plant is the first foray into wind energy for Daewoo Shipbuilding and Marine Engineering Co. Ltd.
"They were looking for an initial foothold in North America to get into this business," said the source. "You’re looking at a company that’s been very successful at everything they’ve touched their hand to, looking to get into North America, and the province of Nova Scotia was able to land them to make their beachhead here."
No other details about the sale of the plant or government involvement are known, although sources have said funding will also be provided by the Atlantic Canada Opportunities Agency.
One provincial government source said Daewoo plans to hire most of the workers it needs in short order.
The United Steelworkers of America also said last week that a tentative collective agreement between the company and the union is in place.
TrentonWorks was closed in April 2007 after Oregon-based Greenbrier Inc. decided that it wasn’t cost-efficient to keep the plant in operation.
First opened in 1872, the number of workers employed at the facility fluctuated during its years in operation. But it did employ 1,200 people as recently as November 2005 and employment peaked above 2,000 in the 1980s.
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