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of Nova Scotia’s Registry of Joint Stock Companies show that the registration of Maritime Steel Foundry Limited was revoked for non-payment of the company’s annual registration fee on June 6, 2013.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