Steel roll-forming plant scrapped in Espanola

A steel roll-forming plant slated to be built in Espanola has been scrapped after funding was denied by the NOHFC.

In a May 25 news release, the Town of Espanola indicated that Kilganan Group Ltd., which is operated by Little Current businessman Jib Turner and partner Frank Lacasse, had withdrawn its offer to purchase land in the town's industrial park.

The company had planned to form a new business, Northern Metal Framing Inc., and construct a steel roll-forming plant in the industrial park, where housing components would be manufactured.

Twelve jobs would have been created in the process, and the town saw the proposed development as an opportunity to attract people to live in the community, as well as boost economic development.

“It is very disappointing the Kilganan Group Ltd. was unable to secure funds for this development,” Espanola Mayor Mike Lehoux said in the news release. “However, council has been advised that their two residential projects in Espanola are still underway and will proceed.”

Kilganan has proposed the development of 19 single-dwelling lots on Second Avenue and Amadori Court, using steel construction.

The town had worked on the NOHFC funding application with Kilganan, but “this very viable economic initiative was not feasible within the current time frame, culture, or the NOHFC targeted market,” the release indicated.

Mayor Lehoux said the town would be interested in a partnership with Kilganan in the future, but in the interim will look elsewhere to attract industrial park development.

“The Kilganan Group Ltd. continues to pursue industrial funding opportunities and we hope to secure a deal in the future,” he said in the release. “For now, the Town of Espanola will continue to market and pursue all opportunities for development in our industrial park.”