The following release is being distributed at the request of the Buchans Development Corporation:

New operator to take over Steelcor operation

The Buchans Development Corporation (BDC) announced today that a new operator has been identified for the former Steelcor operation at Buchans.

BDC chair Keith Courage said that the Thomson Group, a United States based group of seven separate companies under common ownership, will take over the operation immediately. The group, located in Franklin, Massachusetts, manufactures and services a wide variety of industrial production machinery and equipment.

"We are delighted to be able to secure the Thomson Group as operator for the manufacturing facility, and are confident that the new operator, with its solid track record, will bring operational and employment stability at the facility," Mr. Courage said. "The Thomson Group sees a strategic fit for the facility at Buchans in its overall business operations and will continue to work with the established customer base that Steelcor had."

Steelcor Industries Inc., the former owner of the facility, recently was declared bankrupt following a petition filed by the BDC, a shareholder and creditor of the company. Steelcor had been experiencing financial difficulty because it had not been able to secure enough business on a consistent basis.

"It was the view of the BDC that the best option for the future of the operation would be new private ownership with the resources to tap into new markets and the potential to make the operation a success. Filing a petition for bankruptcy enabled the wind up of Steelcor in an orderly manner and facilitated discussions with a potential new operator so that the long-term future of the operation could be secured," Mr. Courage said.

Mr. Courage said the BDC appreciates the support given by the Department of Development and Rural Renewal throughout this process.

"We commend government for working with us to attract new private investment, so that the former Steelcor facility can continue to operate and generate jobs for our area," he said.

Mr. Courage also noted that it was through another government initiative � a trade delegation in June to Boston, led by the Department of Industry, Trade and Technology � that the BDC first made contact with the Thomson Group.

He also thanked the Exploits Manufacturing Initiative, a joint effort of the Exploits Valley Zone Board and the Bishop�s Falls Development Corporation, for their participation in the trade delegation and their assistance in finding a new private sector operator.

For futher information contact: Keith Courage, Chair, Buchans Development Corporation (709) 672-3922.

2000 12 14 10:35 a.m.