Maritime Steel Foundry in New Glasgow, N.S., shuts down, reports say

NEW GLASGOW, N.S. – There are reports that a Nova Scotia steel foundry has shut down after the owner said he ran out of money to keep running the operation.

CTV News and CBC News report that Abbas Jafarnia sent home workers for the Maritime Steel Foundry Ltd. in New Glasgow.

Get breaking National news

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

Sign up for breaking National newsletter Sign Up

By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

CTV News said the closure resulted in layoffs for about 20 employees.

This comes after the provincial government announced three weeks ago that it rejected a $1.1-million loan application by the foundry, saying it was too risky.

At the time, the province’s economic development minister said the company lacked customers.

It was the second time a loan application by Jafarnia was turned down by the province.

Jafarnia became the foundry’s new owner last July after the Nova Scotia Supreme Court approved a $1.25-million bid for the company.

(CTV News, CBC News)