TRENTON, N.S. (CP) -- The Nova Scotia government is spending $60 million to help revive a defunct railcar plant that will soon manufacture components for wind turbines.
Premier Darrell Dexter says the province will have a 49 percent equity stake in the new operation to be run by South Korean manufacturing giant Daewoo Shipbuilding and Marine Engineering Ltd.
"Trenton has waited three years to hear good news about this facility," Dexter said Friday in the old finishing section of the plant in Trenton.
"Not only does this create clean and green jobs for Nova Scotia. It will bring this plant back to life."
The $90-million deal will put the mothballed TrentonWorks railcar plant back in operation after it sat idle for three years while officials sought a buyer.
The plant will manufacture wind turbine towers and blades
Dexter says the deal will create 120 jobs in the first year and up to 500 within three years.
The deal includes $60 million from the province, about $20 million from Daewoo and $10 million from Ottawa through the Atlantic Canada Opportunities Agency.
Daewoo will hold 51 percent of the common shares for its investment of $20.4 million, with the province securing the remaining 49 percent equity stake for $19.6 million.
The province is also providing a $30 million loan for new equipment, up to $6 million for working capital, and a $4 million forgivable loan to acquire land and buildings through the Industrial Expansion Fund.
"Nova Scotia has the potential to become one of the leading generators of wind energy," said Defence Minister Peter MacKay, the area's MP.
"Today's announcement opens the door to new economic opportunities."
TrentonWorks was closed in April 2007 after Oregon-based Greenbrier decided it was no longer financially viable.