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DSME Trenton permanently closing

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DSME Trenton Ltd. (DSTN) officially announced Friday its decision to cease operations at the Trenton facility. This decision follows a resolution put forth by the Board of Directors which was duly approved by both Shareholders; DSME South Korea and the Province of Nova Scotia.

As a result of this notice the province, as the only secured creditor of DSTN, shall exercise their rights under the Bankruptcy and Insolvency Act (BIA) and file application with the Nova Scotia Supreme court for receivership proceedings. Court processing time is expected to take seven to 10 calendar days from the time of filing.

DSME South Korea, the major shareholder and Parent Company of DSME Trenton Ltd., is undergoing organizational restructuring in an attempt to recover from recent, substantial operating losses.  Unfortunately all foreign subsidiaries not related to the core business of shipbuilding, including DSTN, are subjected to the mandated restructuring process.

The company isssued a press release Friday morning saying, "this is unfavourable news which negatively impacts each of our valued stakeholders however DSTN can only express deep appreciation to everyone who supported and contributed to our organization; firstly our employees for their loyalty, hard work and deep commitment; our partner the Province of Nova Scotia for their support and cooperation; the community leaders for their genuine concern and full support; our board members past and present for their contribution and leadership; all other valued stakeholders which are too numerous to mention by name".   

"Although our endeavours in the North America Wind Energy sector did not yield positive results for either shareholder certain positive contributions resulted from the last 5 years of operations at DSTN; e.g. Payroll in excess of $ 37M, expenditures with the local suppliers and contractors in excess of $ 43M, plus all other major expenditures to sustain operations such as raw materials, consumable goods, taxes, utilities, steam, fuel, insurance, freight, and consulting services."

"The most positive outcome we can hope for is that the receivership process will appeal to the right investors for the Trenton facility which complements earlier collective initiatives to attract investment. This facility, once the heart of Trenton and surrounding area when employing over 1,700 skilled workers, remains the key to a prosperous future for the community. Thriving times for the community will return once the right solution is in place, unfortunately our wind energy endeavours were not the proper solution."

 

Timeline:

March 2010: Daewoo Shipbuilding and Marine Engineering made an agreement with the Province of Nova Scotia to open the facility as a world class wind tower manufacturer.

June 2010: DSME and the Province of Nova Scotia officially signed documents to make the transaction official.

June 2011: DSTN Grand Opening.

September 2011: First tower section rolled off the assembly line.

January 2013: DSTN receives ASME certification, allowing for the production of pressure vessels and boilers. This gave DSTN the opportunity to diversify its business and serve a new market.

May 2013: DSME Trenton Ltd appoints Myong-Jun Park as the new president and CEO of DSTN.

September 2013 – DSTN delivered its first 30,000 gallon pressure vessels for the oil and gas industry.

August 2013: Towers for the Hermanville Clearspring Wind Project began to be delivered to their destination in Prince Edward Island.

2014-15: 34 five-section towers for the 102 MW South Canoe Wind Project in Nova Scotia were manufactured in 2014, with the final shipping completed in January 2015.

January 2016:  Media reports circulate that the company is getting ready to close.  Unnamed employees say the company is selling off equipment and winterizing the plant. The company says it is open for business and looking at manufacturing pressurized tanker cars.

February 19, 2016:  Nova Scotia Finance Minister Mark Furey visits Trenton to announce that the province has received word that DSME Trenton will be closing its doors permanently. 

As a result of this notice the province, as the only secured creditor of DSTN, shall exercise their rights under the Bankruptcy and Insolvency Act (BIA) and file application with the Nova Scotia Supreme court for receivership proceedings. Court processing time is expected to take seven to 10 calendar days from the time of filing.

DSME South Korea, the major shareholder and Parent Company of DSME Trenton Ltd., is undergoing organizational restructuring in an attempt to recover from recent, substantial operating losses.  Unfortunately all foreign subsidiaries not related to the core business of shipbuilding, including DSTN, are subjected to the mandated restructuring process.

The company isssued a press release Friday morning saying, "this is unfavourable news which negatively impacts each of our valued stakeholders however DSTN can only express deep appreciation to everyone who supported and contributed to our organization; firstly our employees for their loyalty, hard work and deep commitment; our partner the Province of Nova Scotia for their support and cooperation; the community leaders for their genuine concern and full support; our board members past and present for their contribution and leadership; all other valued stakeholders which are too numerous to mention by name".   

"Although our endeavours in the North America Wind Energy sector did not yield positive results for either shareholder certain positive contributions resulted from the last 5 years of operations at DSTN; e.g. Payroll in excess of $ 37M, expenditures with the local suppliers and contractors in excess of $ 43M, plus all other major expenditures to sustain operations such as raw materials, consumable goods, taxes, utilities, steam, fuel, insurance, freight, and consulting services."

"The most positive outcome we can hope for is that the receivership process will appeal to the right investors for the Trenton facility which complements earlier collective initiatives to attract investment. This facility, once the heart of Trenton and surrounding area when employing over 1,700 skilled workers, remains the key to a prosperous future for the community. Thriving times for the community will return once the right solution is in place, unfortunately our wind energy endeavours were not the proper solution."

 

Timeline:

March 2010: Daewoo Shipbuilding and Marine Engineering made an agreement with the Province of Nova Scotia to open the facility as a world class wind tower manufacturer.

June 2010: DSME and the Province of Nova Scotia officially signed documents to make the transaction official.

June 2011: DSTN Grand Opening.

September 2011: First tower section rolled off the assembly line.

January 2013: DSTN receives ASME certification, allowing for the production of pressure vessels and boilers. This gave DSTN the opportunity to diversify its business and serve a new market.

May 2013: DSME Trenton Ltd appoints Myong-Jun Park as the new president and CEO of DSTN.

September 2013 – DSTN delivered its first 30,000 gallon pressure vessels for the oil and gas industry.

August 2013: Towers for the Hermanville Clearspring Wind Project began to be delivered to their destination in Prince Edward Island.

2014-15: 34 five-section towers for the 102 MW South Canoe Wind Project in Nova Scotia were manufactured in 2014, with the final shipping completed in January 2015.

January 2016:  Media reports circulate that the company is getting ready to close.  Unnamed employees say the company is selling off equipment and winterizing the plant. The company says it is open for business and looking at manufacturing pressurized tanker cars.

February 19, 2016:  Nova Scotia Finance Minister Mark Furey visits Trenton to announce that the province has received word that DSME Trenton will be closing its doors permanently. 

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