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October 23, 1997
(Industry, Trade and Technology)

Minister announces new EDGE company

Judy Foote, Minister of Industry, Trade and Technology, announced today that L & Brothers Metal & Galvanizing Ltd.(LABCO) has qualified for incentives available under the province's Economic Diversification and Growth Enterprises (EDGE) program.

LABCO, the only foundry in Newfoundland for melting ferrous metals, produces municipal castings such as valve boxes, manholes, catch basins and water fittings. The company received EDGE status for its plans to expand operations in its existing markets such as Newfoundland, the Maritimes and Ontario. The company also has plans to gain access to markets in the eastern United States.

During peak periods of the year, present suppliers cannot meet the demand of castings required for projects. LABCO would like to increase its plant capacity to 9,000 castings, up from its current capacity of 5,500.

Ms. Foote said that companies continue to be attracted by the incentives available under the EDGE program. She said: "The level of interest expressed by companies to date indicates that EDGE remains an attractive incentive program. I believe that EDGE continues to create a favourable business environment that makes our province an attractive investment location and will continue to create jobs and diversify our economy."

Company President Peter Brothers said that expansion of the LABCO plant is necessary if they are to expand into export markets. He said: "There is an opportunity for us to expand our existing facilities and capture business outside of the province. The incentives available under the EDGE program enable us to pursue these markets. As a result, we expect to hire 12 additional people and make a capital investment of $400,000."

Companies that meet specific criteria are designated under the province's EDGE program and are eligible for incentives such as a tax holiday, nominal fee Crown land, and the appointment of a facilitator to assist with permits and licences associated with the start-up phase.

Contact: John Doody, Director of Communications, (709) 729-0050 or Herb Jenkins at (709) 747-0997.