March 3, 1998
(Development and Rural Renewal)

New Newfoundland manufacturing plant for Come by Chance

A new company plans to take sulphur generated by the oil refinery at Come by Chance and turn it into a commodity for sale to the fertilizer industry.

Beaton Tulk, Minister of Development and Rural Renewal, and Percy Barrett, MHA Bellevue, announced today that DDRR is providing a term loan of $200,000 to Newsul Incorporated as part of a $1.1 million financial package to establish the business.

When completed, the new plant will manufacture sulphur pellets used in the manufacture of fertilizer. It will be the only sulphur supplier on the east coast of North America and have the ability to supply markets as far south as Uruguay and Argentina.

"This is a wise use of resources," said Mr. Barrett. "Newsul will take liquid sulphur, a refinery byproduct that to now has created an environmental problem in its disposal, and turn it into a marketable product. In effect, Newsul is creating a new export industry for the province."

Newsul has several competitive advantages. First, most Canadian and North American sulphur suppliers are located on the west coast of the continent. They must ship their product to the eastern seaboard through the Panama Canal giving Newsul a shipping cost advantage.

Second, because it is uneconomic to route small shipments of sulphur through the Panama Canal, Newsul will have a price advantage in selling to east coast companies requiring small amounts of sulphur.

Third, unlike Alberta companies, Newsul will incur no trucking or freight costs in moving its product to port as the plant will be located by the North Atlantic Refinery at Come by Chance.

"Over half the work to construct the $1 million plant will go to Newfoundland companies," said Minister Tulk. "In addition, the plant will create seven full-time jobs immediately and growth opportunities may provide additional employment opportunities. This new export industry strategically exploits an existing resource and capitalizes on our geographical position. I am also pleased that my department was able to play a brokerage role in developing the total financing package for this project."

Construction of the plant is expected to begin this spring with production commencing in the summer of 1998. 

Contact:

Clifford Grinling, Communications, (709) 729-7066,
Monty Dyke, Newsul, (709) 739-4036.