Sydney Steel Corporation Business Plan 2003-04 (continued)
Key Tenants -
In December 2001 the corporation signed a lease with Provincial
Energy Ventures for the wharf and back-up lands. This portion of
the Sysco site will principally be used to blend and transport coal.
Provincial Energy Ventures has pledged to spend over $10 million
in upgrading this facility over the next 10 years. The terms of
the lease require Provincial Energy Ventures to make the wharf and
associated services available at market rates.
Although the Sysco property is not being marketed as of yet in
any formal way, other companies have also expressed interest in
locating on site. These include local environmental businesses and
water treatment operation.
Sydney Ports Access
Road - Construction is nearing completion on the Sydney Ports
Access Road, connecting Highway 125 to the Sysco and Nova Scotia
Power piers. The road opened to truck traffic in late 2002 and is
expected to be fully open in the Spring of 2003. Sysco is working
with partners like Nova Scotia Power and the municipality to build
the road quickly, safely and efficiently -- in a way that works
for local businesses, residents and taxpayers. More information
is found on the SPAR page.
Sale of Assets - In
June 2001, Sysco hired a consortium of companies to sell off the
assets of Sydney Steel Corporation. The consortium included Henry
Butcher International, Michael Fox International and Trans-Canada
Liquidations. In August 2001, a two-day auction was held where many
of the assets of the plant were sold -- surpassing expectations
by raising just over $1 million. The larger steel-making assets
of the plant were marketed separately and directly to potential
buyers around the world through a private treaty sale.
Sysco has reached an agreement with Maxsteel Ltd. of the UK for
the purchase and removal of the plant's larger steelmaking assets.
Maxsteel is offering $4.56 million Cdn for the purchase of the assets.
At this point, Maxsteel has not decided on the location for the
assets, but they will be exported out of North America. Selling
the assets now will save approximately $1 million in incremental
demolition costs. The Maxsteel offer was brought forward to Sysco
by Henry Butcher International, the company hired to market and
sell the larger assets of the plant.