Potential restart for Maritime Steel

John Brannen
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Jafarnia hoping to restart beleaguered business with new $15 million investor

NEW GLASGOW – If Abbas Jafarnia gets his way, Maritime Steel may soon operate in New Glasgow and not move to Niagara Falls.

Abbas Jafarnia

In the latest attempt to restart the century-old foundry, a new, unnamed potential investor has come forward and has offered, according to Jafarnia, a contract worth $15 million. 

“After the story was in The News to move the facility to Niagara Falls, someone contacted me with the offer,” said Jafarnia.

With a new investor in place, he’s hoping to get new orders going and Maritime Steel employees back to work. While Niagara Falls was an option, he’d rather keep the foundry here.

“Generally speaking as a business it’s better to stay than go. But when there was too much resistance, our next option was to move the facility,” Jafarnia said. “We did the arrangements and everything was in line about a month ago [to move to Ontario] but we had a new interested party who came and we’re going to try and do the job here.

Getting back to business is proving challenging, however. The foundry’s approval to operate from Nova Scotia Environment expired and must be renewed begin operations again. This involves a public consultation and 60-day review period.

“The reason we require a new application at this time is because the foundry closed down and expired,” said Theriault of Nova Scotia. “They would have the option to renew but it expired.”

According to Theriault, two regulations from the Environment Act facilitated the need for a permit, the Approvals Procedure Regulations and part 2, section 15B of Activities Designation Regulations. Once the necessary info has been provided by Jafarnia and the public consultation finalized, the department would then determine application complete.

Public records of Nova Scotia’s Registry of Joint Stock Companies show that the registration of Maritime Steel Foundry Limited was revoked for non-payment of the company’s annual registration fee on June 6, 2013.

“A certificate of registration is required whenever a corporation is carrying on business in Nova Scotia,” said Susan Mader Zinck, of Service Nova Scotia & Municipal Relations. “Maritime Steel Foundry Limited does continue to exist as a company under the Companies Act until it is voluntarily dissolved or struck off by the Registry. This is separate from its registration status.”

Jafarnia said he was hoping to get things moving and considers this the latest hurdle of many from the government.

“Of course we were hoping to close the deal ASAP but there’s been some conditions put in our way and one of them was having the working permit,” he said. “They know that I’m in a rush and that it’s very critical to close the deal. But I’m in the process of doing the public consultation and paying fees.”

Jafarnia is now awaiting the public’s input about Maritime Steel. Individuals wishing to comment may go to the Maritime Steel website.

 

john.brannen@ngnews.ca

On Twitter: @NGNewsJohn

Organizations: Maritime Steel Foundry, Joint Stock Companies, ASAP

Geographic location: Niagara Falls, Nova Scotia, Maritime Ontario

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Recent comments

  • spoonman
    October 13, 2013 - 16:37

    40 and 50 year olds citizens you can bulldoze all you like if you have 4 million dollars to buy the land and tens of millions for the environmental clean up that Mr Jafarnia does not have to do because he won a Bankruptcy sale for the asset in question. There will be not practical way anyone can make that property work as an investment simply because the railway beside it is going to have one train everyday with 35 crude oil tank cars going to Point Tupper and about 50 trains a day coming from the new super container terminal in Guysborugh County on the Canso Strait. The towns dream of Condos, Hotels and convention centres will indeed be dreams never fulfilled. What people like you two have to get over is your Scottish Theme Park fantasies in New Glasgow that failed in the Town of Pictou. Notice the town council there is not wishing for Northern Pulp , Advocate Publishing or the Ship yards to close. Some how we get stuck with a town hall that does not realize the survival of the area depends on people like Mr Jafarnia to create employment that brings capital into the Nova Scotia Economy unlike a morbit tourism Non industry

  • Jason
    October 12, 2013 - 22:49

    Oh for the love of ... Please keep that sticker closed for good. Hell maybe it's some business group in Niagara throwing the business this way to KEEP IT OUT of their backyard. On the other-hand this place is already pollution city, likely better to keep it concentrated here, the people clearly care more about meager employment than the health of their kids.

  • 40 year citizen
    October 08, 2013 - 09:52

    Once and for all i wish someone would bulldoze that old century building into the east river, give me 2 million dollars at least i can build up a buisness much safer and wiser then tosssing money into that steel plant

    • 50 year old citizen
      October 09, 2013 - 09:10

      I agree it should be bulldozed but, please not in the east river as I grew up watching them bulldoze anything & everything they wanted in there. So sorry to see it go , no . Environmental permits and others bring them on. The job I'm sure will end up not to be ours either....

  • Amir Nafez
    October 07, 2013 - 21:57

    I appreciate Mr Jafarnia's consistency and effort in terms of removing the road blocks and running the foundry again! I hope to see the Maritime Steel Foundry is working soon.

  • johnny smoke
    October 04, 2013 - 19:53

    Imagine the environmental permit expired, no one was there producing anything. No one was even flushing the toilets. The permit expired because the date said so. Of course if thousand upon thousand of bucks to useless government red tape merchants had of been paid all would be well now. It is beyond time that the elected representatives take the control away from the faceless bureaucrats and lead this province back to the land of prosperity. As long as the bureaucrats rule the roost they hens will not lay. Is that simple enough for ya?

  • Jeff lynch
    October 04, 2013 - 16:20

    Hope to see the foundry up and running again. Good luck guys.

  • Turnip truck driver
    October 04, 2013 - 08:50

    What a great way to deflect the requirements to acquire the permit to operate. He must now fast track the process due to the risk of the investor pulling out. This is getting a bit old. Go to the media...blame the Government...and don't provide any business case, order reqs, capital plan, etc. I don't see anyone falling off my truck!!

    • johnny smoke
      October 06, 2013 - 18:03

      Your reply is as about as senseless as the safety sticker on your vehicle window. One day your car meets the requirement of being safe, then kaboom next day well just let the cops see you with an unsafe car just because your sticker ran out. But fear not after paying $300 bucks to the crown plus the safety inspection fee to the garage your car is deemed safe again. Just a big crock of poo, as are the majority of these phoney baloney permits and licences just a big tax/fee rip off.

  • Burton Langille
    October 03, 2013 - 17:30

    Mr. Abbas Jafaria has gone through unbelievable struggles to make this happen; he should be applauded for his determination. He loves this community and deserves our fullest support. There are great opportunities for foundries since so many went out of business after 2008 and Maritime Steel is a top performer. Best of Luck Abbas, you truly are deserving. Burt Langille