Receiver still working on deal with bidder on former DSTN

Negotiations continue with a potential buyer for the former DSTN wind tower plant in Trenton.

David Boyd of receiver PricewaterhouseCoopers said the process would normally have a shorter time frame, but this case is “a little bit more complicated than somebody just purchasing the assets.”

This is because of union matters and because the bidder is still in the process of obtaining financing, he said.

“We’re working to see if a deal can be made,” he said. “Obviously we’re working hard on a solution – it’s just taking a little bit longer than expected.”

DSME Trenton Ltd. (DSTN) announced in February of last year that it would cease operations at the facility. Following the announcement, the province filed for receivership as the only secured creditor.

The Korean company manufactured wind towers there, with production beginning in 2011. Daewoo Shipbuilding and Marine Engineering closed the Trenton facility as part of organizational restructuring in an attempt to recover from the parent company’s operating losses.

The facility produced railcars as Trenton-Works and for several other owners before closing in 2007. At its peak, the facility employed more than 1,700 skilled workers.

A bid to operate the facility was conditionally accepted by the province in January, and negotiations began as part of the court-appointed receivership process.

At the time of the announcement, then-business minister Mark Furey said no deadline was given with respect to the process.

Trenton Mayor Shannon MacInnis said he hasn’t heard anything about the negotiations since the announcement in January. Noting that he’s growing inpatient with the process, he said: “We have to remain hopeful.”

He had previously said that reopening the plant would mean more jobs for Pictou County and would help Trenton’s tax base.

Marla MacInnis, spokesperson for the Nova Scotia Department of Business, said if an agreement is reached, court approval will be required.