Nova Scotia Invests $60m in Jobs, Green Economy; Government of Canada Invests $10m in Jobs for Future

NOTE: A social media version of this release, including downloadable hi-res photos, video and audio clips is available at gov.ns.ca/news/smr/2010-03-05-trenton.asp .

Nova Scotia's green economy is continuing to grow through a new venture between the province of Nova Scotia and Daewoo Shipbuilding and Marine Engineering Ltd. (DSME).

DSME will establish a wind turbine tower and blade manufacturing facility at the former TrentonWorks 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.

"Government is delighted that a company with the resources and vision of DSME will undertake the manufacturing of wind turbines in Trenton," said National Defence Minister Peter MacKay. "This project will put Nova Scotia in the forefront of the green revolution and provide a legacy of long-term economic benefits for the people of Pictou County and the province of Nova Scotia."

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.

"Nova Scotia Power is delighted to welcome DSME to Trenton and we can attest to the great quality of the workforce here as well as the community's support for business," said Rob Bennett, president and CEO of Nova Scotia Power. "We look forward to exploring opportunities with DSME, not only relating to this exciting new venture in Trenton, but regarding the further development of tidal energy in Nova Scotia and building together on our existing local partnerships."

"This is a great move for Nova Scotia's wind industry and I applaud the province, the government of Canada and NSBI for building this important relationship with DSME," said Mike Magnus, CEO, Shear Wind. "Shear Wind's future wind-project plans could keep this plant busy for years to come; the combination of our turbine tower requirement and DSME's production capacity truly leads to a made in Nova Scotia solution."

Because TrentonWorks is in bankruptcy, several legal steps are necessary before the deal can be completed.

The Industrial Expansion Fund helps industries with innovation and technology, and contributes to a prosperous and sustainable business climate for Nova Scotia. The fund helps protect jobs and support businesses to be more competitive and sustainable. It provides financial support, such as loans and guarantees, when many traditional sources are reluctant to do so.

DSME is a diversified company and one of the world's largest ship builders. The South Korean-based company was established in 1973 and today is a first-class builder of commercial and naval ships and offshore projects. In 2009, DSME acquired DeWind Inc., an American wind turbine engineering company, and announced plans to expand into the wind-power sector and build a production plant in North America. South Korea-based Daewoo is publicly listed on the Korean Stock Exchange.

Nova Scotia Power Inc. is the largest wholly owned subsidiary of Emera Inc., a diversified energy and services company. Nova Scotia Power provides more than 95 per cent of the generation, transmission and distribution of electrical power to 486,000 customers in the province. The company is focused on new technologies to enhance customer service and reliability, reduce emissions, and add renewable energy. Nova Scotia Power has 1,900 employees and $3.5 billion in assets.