MEDIA RELEASE PR38636
Korean Manufacturer Chooses Nova Scotia For North American Production Plant
HALIFAX, Canada, Mar. 5 /CNW-AsiaNet/ --
Korea-based Daewoo Shipbuilding & Marine Engineering (DSME) has chosen Nova
Scotia, Canada, for its North American production centre for wind turbine towers and
blades. The operation will be located in Trenton, Pictou County, creating up to 500
direct jobs and is expected to be operational by fall 2010.
The Province of Nova Scotia and DSME have signed a shareholder agreement
and committed to equity investments: 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 have a representative on the board of directors. The Province of Nova
Scotia is also providing start-up financing, a loan for new equipment, working
capital, and a loan to acquire land and buildings.
"This is a historic day for Nova Scotia as we welcome another leading
international manufacturer to our business community" said Nova Scotia's
Premier, Darrell Dexter. "Nova Scotia's partnership with DSME reinforces the
province's position as a gateway to lucrative North American markets."
The partnership between Nova Scotia and DSME is reflective of the
province's work to diversify its sources of foreign direct investment by
tapping into emerging markets, specifically Asia.
"Nova Scotia is the right location for DSME as we plot our strategy to
diversify into the wind energy sector," said Mr. Nam Sang-Tae, CEO & 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 $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.
This venture is the result of more than a year of work that began with
signing a memorandum of understanding to explore economic opportunities. The
original memorandum was developed by DSME, the Nova Scotia government
departments of Energy, Economic and Rural Development, and Nova Scotia
Business Inc.
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 DSME is publicly listed
on the Korean Stock Exchange.
For more information on this and other opportunities, visit:
SOURCE: Nova Scotia Business Inc.
CONTACT: Sarah Levy,
Nova Scotia Business Inc.,
(902) 222-3658,
slevy(at)nsbi.ca;
Janet Lynn McNeil,
Nova Scotia Premier's Office,
(902) 424-2402,
mcneiljl(at)gov.ns.ca
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