The government of Nova Scotia expects to receive $9-14 million by selling off the remaining assets of Sydney Steel. However, the cost of tearing down the facilities in Sydney, N.S., and flattening the site is expected to consume about $8 million of those proceeds.
Five towers and some vacant buildings are slated for demolition.
A consortium of liquidators has been selected to sell off pieces of the plant, and will receive a 10% commission on gross sales.
Toronto-based Philip Demolition, a subsidiary of Philip Services, has been brought in to work with the liquidators to remove the structures.
The liquidation and demolition phase could last 2-3 years, with work scheduled to begin this summer.
Sydney Steel’s nearly 600 unionized employees are now receiving pensions or severance packages. The province will contribute an additional $50 million to these packages.
The Crown corporation has operated for 33 years, during which time it ran up about $3 billion in losses. Late last year, the province announced it was exiting the Cape Breton steel business.
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