April 2, 1996
(Industry, Trade and Technology)

First two EDGE companies announced for 1998

Chuck Furey, Minister of Industry, Trade and Technology, announced today that AbbaCom Logic Corporation and Genesis Organic Inc. are the first two companies eligible for incentives available under the province's Economic Diversification and Growth Enterprises (EDGE) program for 1996.

AbbaCom Logic is a high tech company that will establish a design, manufacturing and distribution facility in the St. John's area to produce computer up-grade products that support the electronics and accessories industry. The company plans to test, manufacture and distribute add-in/add-on memory upgrades for computer systems and computer peripherals ranging from personal computers to high-end workstations. The Newfoundland plant will be the only one in Eastern Canada producing SIMM's memory boards, a high-demand memory upgrade product. The project requires a capital investment of $4.45 million and is expected to employ 60 people by its second year of operation.

Genesis Organic Inc. is a Corner Brook company that will produce a premium organic compost primarily for use in the home gardening market. It is produced from local waste products including wood bark from the pulp and paper mill, and fish and chicken offal.

Having received excellent market reviews at the national and international level for product samples, the company is targeting the export market. The project will create 12-15 jobs and require a capital investment of $1.05 million all of which will be provided by the private sector.

Mr. Furey said: "AbbaCom Logic and Genesis Organic represent the innovative type of companies that we are trying to attract through EDGE. One company markets an environmentally-friendly product, turning waste product into a resource with immense potential and the other is involved in the rapidly-growing high tech sector. Establishing these companies will complement our efforts to diversify the provincial economy by generating new wealth and creating jobs."

The two companies bring the total number of EDGE companies to 30. Collectively, these companies have the potential to create 800 new jobs and will generate new investment of $102 million in the province. Close to 90 per cent of capital investment for these companies is expected to come from the private sector. Companies that meet specific criteria are designated under the province's Economic Diversification and Growth Enterprises (EDGE) program and are eligible for incentives such as tax holidays, nominal fee Crown land, and training grants in the initial phase of operation.

Contact: John Doody, Director of Public Relations, (709) 729-0050.