Relocate to USA and India': 200 High-Tech Jobs at Risk as Indian-Origin Businessman Gives Up Nuclear Licence
Ottawa/New Delhi: In a major blow to the Canadian high-tech manufacturing sector, an Indian-origin businessman has announced plans to relocate his company's operations to India and the USA. Krishnan Suthanthiran, owner of the medical manufacturer Best Theratronics, stated he is being "forced" to move after deciding to surrender the company's nuclear licence.
The move places approximately 200 high-tech jobs at risk in Kanata, a technology hub near Ottawa, Canada.
Why is the Firm Moving?
The controversy centers on a dispute between Suthanthiran and the Canadian Nuclear Safety Commission (CNSC).
- Financial Dispute: The regulator ordered Best Theratronics to provide a financial guarantee of $1.8 million to cover potential cleanup and decommissioning costs if the site were ever to close. Suthanthiran refused to comply, stating he did not have the funds to restore the guarantee and arguing the regulator was wrong.
- Surrendering the Licence: Unable to meet the CNSC's conditions, Suthanthiran decided to abandon the nuclear licence entirely. In an email to CBC News, he claimed the cost of maintaining the licence was too high and that the regulatory pressure was forcing him "to relocate to the USA and India".
Impact on Jobs and History
Best Theratronics is not just any factory; it is a historic facility that was once a Crown agency and helped develop the world's first cancer treatment machine.
- Job Losses: The surrender of the licence means the facility can no longer handle nuclear materials like Cobalt-60 and Cesium-137, which are used to manufacture cancer treatment devices. This shift threatens the livelihoods of 200 skilled workers.
- Decommissioning Underway: The CNSC has confirmed that the company is already in the process of removing nuclear materials. Best Theratronics has secured export licences to ship its radioactive sources out of Canada.
A Troubled Recent History
Suthanthiran acquired the company from MDS Nordion in 2007, but the firm has struggled in recent years.
- Financial Struggles: Suthanthiran claims to have lost millions of dollars since buying the business.
- Labor Disputes: The company recently faced a bitter 10-month-long strike by workers over pay and working conditions.
- Missed Deadlines: Tensions with the regulator worsened when the company missed a December reporting deadline. A company representative claimed this was because Suthanthiran was travelling and could not be reached.
What's Next?
The company faces a strict deadline on Tuesday to submit an initial decommissioning plan for its Kanata plant. While Suthanthiran has signaled his intent to shift the Canadian facility towards non-nuclear activities, the core nuclear manufacturing operations appear destined for relocation to India and the United States.
FAQ: Best Theratronics Relocation
Q1: Why is Best Theratronics moving its operations out of Canada?
Ans: The company's owner, Krishnan Suthanthiran, stated he is being "forced" to move due to regulatory pressure and high costs. The main trigger was a dispute with the Canadian Nuclear Safety Commission (CNSC), which ordered the company to provide a $1.8 million financial guarantee for future cleanup costs. Suthanthiran refused to pay this, claiming he did not have the funds.
Q2: Where are the operations being relocated to?
Ans: Suthanthiran has announced that the core nuclear manufacturing operations will be relocated to India and the United States (USA).
Q3: How many jobs are at risk in Canada?
Ans: Approximately 200 high-tech jobs are at risk at the facility in Kanata (near Ottawa). These workers were involved in manufacturing medical equipment using nuclear materials.
Q4: Will the Canadian factory close down completely?
Ans: Not necessarily. Suthanthiran has signaled his intent to shift the Kanata facility towards "non-nuclear activities". However, the site will no longer be allowed to handle radioactive materials like Cobalt-60 once the licence is surrendered.
Q5: What is the immediate next step for the company?
Ans: The company faces a strict deadline on Tuesday to submit an initial decommissioning plan to the regulator. This plan will detail how they intend to clean up the site and remove the nuclear materials.
Q6: Who is Krishnan Suthanthiran?
Ans: He is an Indian-origin businessman who acquired Best Theratronics (formerly part of MDS Nordion) in 2007. He claims to have lost millions of dollars since buying the business and recently faced a 10-month strike by his employees.
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