Minister of Development and Rural Renewal, Judy Foote, today commended Piccadilly Plastics, as being exemplary of one of the many small business success stories which are happening all over Newfoundland and Labrador.

Piccadilly Plastics, which is located on the Port au Port Peninsula, recently secured a $20 million contract with a major U.S. based food service company to manufacture and supply a variety of plastic food service products such as knives, forks and spoons. This contract will diversify its existing operation and will result in an increase in employment at the plant from 22 to 60 full-time jobs.

Piccadilly Plastics was established on the Port au Port Peninsula in 1995 with the assistance of the local development association and the federal and provincial governments. Provided with business counselling assistance and direct financial support from the former Enterprise Newfoundland and Labrador Corporation, as well as benefitting from its designation as an EDGE company, Piccadilly Plastics quickly established itself as a successful small plastics thermoforming company, penetrating external markets in Canada and the United States.

However, just as the company was into full production employing 22 people full-time and exporting plastic creamer cups across North America, a fire destroyed the plant in April 1996. With the support of the local community, as well as a highly-skilled, productive and motivated workforce, the company rebuilt the plant and is now operational again, ready to fulfil its new contract.

"The success of Piccadilly Plastics goes to the heart of Government's economic growth agenda," said the minister. "Government's goal is to create an environment in which the private sector can create new wealth and long-term sustainable jobs for the people of this province. It involves diversification of the economy, especially in rural areas of the province that have been impacted by the downturn in the groundfish fishery. It involves the development of internationally competitive firms in strategic new sectors of the economy, focusing in particular on export markets. And it involves partnerships - partnerships among the private sector, the provincial and federal governments, community-based development organizations and the people of this province. Piccadilly Plastics is a good example of government's economic growth agenda in action.

"Piccadilly Plastics is not an isolated success story either," continued Ms. Foote. "Through the efforts of the Department of Development and Rural Renewal, the EDGE program, and other business development services and support provided by the province, new small businesses are starting up and expanding throughout Newfoundland and Labrador. Piccadilly Plastics is pointing towards a new way of doing business in this province that bodes well for our economic future."

Contact: Susan Laite, Director of Communications, Development and Rural Renewal, (709) 729-4570.