Electronic components manufactured in Springdale

HCR Electronics Canada Inc. of Springdale celebrated its official opening today. Present for the event were company founder Glenn Morris, Sandra C. Kelly, Minister of Industry, Trade and Technology and other special guests.

HCR Electronics Canada Inc., a subsidiary of HCR Electronics Inc. of Burnet, Texas, manufactures circuit boards and wire components for digital electronic timers, battery testing equipment and miniature charging systems. Currently, the company has seven people employed at the Springdale location, with plans to hire another four people by the end of the year.

At the opening, Minister Kelly announced the company had received Economic Diversification and Growth Enterprises (EDGE) status. HCR Electronics Canada Inc. also received investments from the Government of Canada through the Atlantic Canada Opportunities Agency (ACOA) and Human Resources Development Canada (HRDC).

"I am very pleased that the EDGE program acted as an incentive in helping to bring HCR Electronics Canada Inc. to Springdale," said Minister Kelly. "This proves that EDGE is a significant economic development tool that is helping to create jobs and bring investment to all areas of Newfoundland and Labrador."

Glenn Morris, president of HCR Electronics, first came to Newfoundland and Labrador on a hunting trip in 1998. Faced with a labour shortage in Texas, he was very impressed with the available workforce and business investment climate of the province.

"Our company depends on a reliable source of quality-made components," said Morris. "The climate for business growth which is due in part to the federal and provincial initiatives for local enterprises, combined with the skilled workforce, makes Newfoundland and Labrador a prime location for our business."

ACOA invested a repayable loan through its Business Development Program totaling $79,465, while HRDC invested $41,952 under the Targeted Wage Subsidy program of the Canada-Newfoundland and Labrador Labour Market Development Agreement. This temporary subsidy was provided to assist the employer to hire and train six EI eligible workers who would normally have had difficulty finding work.

"This company shows great promise for success," said George Baker, Minister of Veterans Affairs and Secretary of State for ACOA. "The Government of Canada is committed to fostering growth and diversity in the economy of Newfoundland and Labrador, and HCR Electronics Canada Inc. is an example of our commitment at work."

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, including the Town of Springdale, 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:

Glenn Morris, President
HCR Electronics Inc.
(709) 673-4655

Jacqueline Simon
Department of Industry, Trade and Technology
(709) 729-0050

Doug Burgess
Atlantic Canada Opportunities Agency
(709) 772-2935

David Earles
Human Resources Development Canada
(709) 772-2330

2000 07 21                            11:50 a.m.