Korea-based Daewoo Shipbuilding & Marine Engineering (DSME) has chosen Nova Scotia for the location of its North American production center for wind turbine towers and blades. The operation, to be located in Trenton, Pictou County, is expected to be operational by this fall.
The province of Nova Scotia and DSME have signed a shareholder agreement and committed to equity investments: DSME is contributing C$20.4 million and will hold 51% of the common shares, and the province is contributing C$19.6 million and will hold 49% of the common shares.
The province will have a representative on DSME's board of directors. Nova Scotia is also providing start-up financing, a loan for new equipment, working capital, and a loan to acquire land and buildings.
‘Nova Scotia is the right location for DSME as we plot our strategy to diversify into the wind energy sector,’ says Nam Sang-Tae, CEO and president of DSME. ‘We were attracted by Nova Scotia's skilled workforce, efficient transportation systems, competitive costs and multiple energy sources, including wind, tidal and offshore. The support we received from government was another key factor in our decision.’
The government of Canada announced that it intends to invest C$10 million in the plant. The investment, through the Atlantic Canada Opportunities Agency, will be a C$5 million repayable loan and a C$5 million contribution for adjacent land improvements.
SOURCE: Nova Scotia Business Inc.