The Canadian province of Nova Scotia and Daewoo Shipbuilding and Marine Engineering Ltd. (SEO:042660) have reached an agreement regarding the establishment of a wind turbine tower and blade manufacturing facility in Pictou County.
The venture allows for Daewoo Shipbuliding and Marine Engineering (DSME) to transform the existing TrentonWorks site into a new wind manufacturing facility, creating hundreds of new jobs -- 120 within the first year.
DSME and the province are signing a shareholders agreement and committing to an equity investment. DSME is contributing C$20.4 million and will hold 51 per cent of the common shares and the province is contributing C$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, Nova Scotia is providing start-up financing -- a C$30-million loan for new equipment, a loan of up to C$6 million for working capital, and a C$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.
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 Government is delighted that a company with the resources and vision of DSME will undertake the manufacturing of wind turbines in Trenton," said National Defense 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."
Source: Globe-Net
Harry Tournemille has been covering renewable energy and cleantech sectors for Energy Boom for almost two years. With a focus on solar, wave, and biofuel energies, Harry looks to find real-life applications for the host of information being put out on a daily basis.
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