This is an important piece of news that came out the news this morning in Nova Scotia. This could potentially be huge for NAR.
Wednesday, August 25, 1999
The Halifax Herald Limited
'Good news' about Sysco
Mill may have future - Hamm
By Amy Smith / Provincial Reporter
Premier John Hamm says Sydney Steel may have another shot at survival.
After meeting with Sysco brass Tuesday, Mr. Hamm said there are some possible buyers.
"We got good news today, but as I said, there's not somebody with pen in hand," Mr. Hamm said.
He had just emerged from a four-hour discussion with ABN Amro, the Netherlands-based investment bank hired to
sell the plant;
Hoogovens, the Dutch steelmaker managing the plant; two Sysco board members; and Economic Development
Minister Gordon
Balser.
"I would think the steelworkers would be encouraged by the fact that someone is interested in looking at Sysco and
purchasing
Sysco," Mr. Hamm said.
"What I've heard today is something that causes me some optimism."
But the premier was tight-lipped about who was eyeing the heavily subsidized government-owned plant.
In March, Mr. Hamm said Cape Breton would be better off without Sydney Steel.
"Now is the time to close the book on Sysco," he said at that time.
Frank Corbett, NDP economic development critic, said the premier now seems to realize closing the plant would be
difficult and
costly.
"I think they made statements about Sysco that were blatantly political," Mr. Corbett said.
But the economic development minister said closing the plant is still a possibility.
"In the best of all possible worlds, we'll find a buyer for that plant as an ongoing operation," Mr. Balser said.
"If that does not come to pass, then we clearly had a mandate from the province of Nova Scotia, from the people, to
do something
about it, and that's our intention. The decision either is sell it or it will have to be closed."
If the plant is shut down, Mr. Balser promised its workers would be treated fairly.
Mr. Balser said Sysco has accessed $5 million of the $44-million line of credit from the Liberal government. He said
the steel plant
can only access up to $15 million without the approval of the finance minister.
The minister said the Tories plan to keep Hoogovens as plant managers until the end of 1999.
Hoogovens gets about $700,000 per month to run Sysco.
Representatives from Hoogovens and ABN Amro were not keen to comment after the meeting.
Rick Lawler, president of Hoogovens Technical Services, would only say Sysco is a good plant that can be sold.
Fred Floburg, senior managing director of ABN Amro, said the meeting was a good exchange of information and that
any other
comment should come from the province. |
