Workers hired back as manufacturing plant reopens in Charlottetown

Employees of a Charlottetown company that was placed in receivership last fall are now back on the job.

In November, Atlantic Systems Manufacturing shut down as part of the receivership affecting Diversified Metal Engineering.

The receiver approved the sale of ASM last Friday to Eastern Fabricators of Georgetown. On Monday, the new owners were in the building, getting it ready to go back into production.

"We're excited about the opportunity," said Todd Cormier, one of the five co-owners.

The receiver found Eastern Fabricators' bid "superior to the other [three] bids" not just because of the purchase price, but also in its commitment to rehire former employees, its ability to close the deal quickly and the fact that the bid wasn't subject to any financing conditions.

The new owners said the two companies complement each other — both make equipment for processing facilities. 

ASM makes equipment for seafood processing plants, mainly in the Atlantic region, while Eastern Fabricators has contracts with Cavendish Farms, McCain, and Maple Leaf Meats, and around the world.

"It's working in our field but it has products that we don't specialize in that we also can sell," said Cormier.

We're all glad to be back.- Stephen Matheson, employee

Within days of the sale being approved, the new owners were phoning former employees, asking them to come back to work.

Most of the workers had been with the company for 20 years or more, said Cormier, and their experience is valued.

So far six of the 13 employees have returned.

"Most everyone came back who worked here before. We're all glad to be back," said Stephen Matheson.

Robbie Nantes worked for ASM for 23 years. Friday was his second day back — he said it's like he never left. 

"We're doing our jobs like we did and everyone pretty much resumed their roles within the company. It's a little slow getting going but it's coming," said Nantes.

Slow, because all its contracts and arrangements with suppliers were affected when the plant closed.

Office staff are working to rebuild those contacts and secure new work, said Cormier.

In the meantime the new owners have brought in work from the Eastern Fabricators plant in Georgetown — to jump start ASM's reopening.

"We've been taking this material in from our other facility, and we took a lot of work in here to put the production right on the floor and get everyone back to work," said Cormier.

ASM hopes to be back in full production in a few weeks and Cormier is setting his sights higher. 

Eastern Fabricators started five years ago with just two employees, he said, and today it has 80 employees. With that in mind, he hopes to increase the workforce at ASM to 20 by the end of the year.

"This business was a stand-alone business for 25 years, so we believe it has some real potential to continue for 25 more," he said.

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