February 10 ,2000
(Industry, Trade and Technology)

Bishop�s Falls company receives EDGE status

Industry, Trade and Technology Minister Sandra Kelly today announced that Hi-Point Industries Ltd. of Bishop�s Falls is the latest company to receive Economic Diversification and Growth Enterprises (EDGE) status for the horticultural peat production aspect of its operations.

Hi-Point Industries Ltd. uses local peat moss to produce both speciality oil absorbent products, marketed under the Oclansorb� brand name, and horticultural peat products. While the Oclansorb� product line has been marketed locally, nationally, and internationally, the horticultural peat, used primarily for gardening, has only been marketed locally. The company is currently expanding its operations to allow for increased production of horticultural peat, which will enable it to target international markets for this product.

"As a dynamic company in the central region of our province, Hi-Point Industries has worked hard to find innovative ways to grow its business," said Minister Kelly. "I am extremely pleased that the EDGE program, one of the most attractive business incentive programs in North America, enabled this company to expand its operations, and aggressively pursue new markets for its products."

During peak harvesting times Hi-Point Industries Ltd. employs over 30 people. This coming summer the company will be expanding its harvesting operations to a second area near Gander, which will complement its current harvesting area in Bishop�s Falls. Newfoundland and Labrador has vast resources of peat, a renewable, natural, organic material.

"We are extremely pleased that our company has qualified for EDGE status," said Bill Butler, president of Hi-Point Industries Ltd. "The EDGE program was instrumental in enabling our company to diversify and increase production of horticultural peat products. We will now be able to market all of our products to a wide-range of national and international regions."

The EDGE program is available to both new and expanding businesses. Companies meeting EDGE criteria are eligible for a 10-year tax break from provincial corporate income tax and provincial payroll tax, followed by a five year phase-in of these taxes, unserviced Crown land for a nominal fee, and access to a facilitator who will help obtain the required permits and licences associated with start up or expansion. In addition, many of the province�s municipalities participate in the EDGE program and offer similar tax holidays from property and/or business tax.

To be designated an EDGE corporation, an applicant must show potential for minimum capital investment of $300,000 or incremental sales of $500,000 annually, the potential to create and maintain at least 10 permanent jobs, and must provide a substantial net economic benefit to the province, among other requirements.

Media contact: Jacqueline Simon, Communications, (709) 729-0050.

2000 02 10                                                 4:30 p.m.