Expanding Corner Brook Company receives EDGE status

After being in business for four years, Corner Brook company Provincial Studios Ltd. is continuing to expand its business operation, which involves work for Artistry cosmetics, the cosmetic arm of Amway Corporation. The company currently has 25 employees in Corner Brook, and expects to employ an additional 30-40 people by this fall to accommodate its growing business.

Provincial Studios Ltd. is a sister company of Penney Photography and Provincial School Studios. The latter two companies operate in the more traditional photography areas such as weddings and school photos and have been in business in the Corner Brook area for a number of years.

"Since we have been in business, Provincial Studios Ltd. has always looked for ways to grow our company, and to create new opportunities in this region," said Gregory Penney, president of Provincial Studios Ltd. "We are committed to being a Newfoundland and Labrador based company that enhances employment potential for local citizens."

The company is facilitating a "glamour" photography business, whereby Amway Distributers from across Canada book a Provincial Studios Ltd. photographer for a photo shoot. Typically, the distributer arranges for 20 customers or more per session, who each have their makeup done by Artistry Cosmetics and their hair done by a professional hairdresser. Provincial Studios Ltd. coordinates all of the arrangements from its Corner Brook office, supplies the photographer and develops the film. Through its Amway clients, Provincial Studios Ltd. then sells the "glamour" photograph to the customers.

Provincial Studios Ltd. originally tested the operation with a number of clients in Ontario and now has clients across Canada. It has recently expanded with a $900,000 investment in a state-of-the-art film processing lab to meet the needs of its growing list of clients. The company has received Economic Diversification and Growth Enterprises (EDGE) status for the expansion aspect of its business.

"It is great to see companies such as Provincial Studios Ltd. taking an innovative idea and capitalizing on a unique business opportunity. I am pleased that the EDGE program was a factor in helping Provincial Studios Ltd. to expand its business and create new jobs in our province," said Industry, Trade and Technology Minister Sandra C. Kelly.

At its headquarters in Corner Brook, Provincial Studios Ltd. employs a number of photographers, lab technicians, accounting and shipping staff, and customer service representatives that take bookings and coordinate photo shoots across Canada. Through its latest expansion, Provincial Studios Ltd. will be hiring additional staff to accommodate the growth of its Artistic Photos program.

"Provincial Studios Ltd. is an excellent example of a local company that has found an opportunity in a niche market, and has used that to grow its business," said Paul Dicks, MHA - Humber West. "As the company continues to expand and hire additional people, it will no doubt provide a boost to the Corner Brook economy."

"The future of our city relies on the entrepreneurial spirit demonstrated by Provincial Studios Ltd. More entrepreneurs mean more small businesses, and in a city where we are looking for new ways to revitalize the economy, this is a great addition," said Corner Brook Mayor Dave Luther.

Amway Corporation had worldwide sales in excess of $5.7 billion in more than 80 countries in 1998, while Artistry Cosmetics has annual sales of cosmetics alone in excess of $2 billion.

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 Corner Brook, 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
Director of Communications
Industry, Trade and Technology
(709) 729-0050

Gregory Penney
President
Provincial Studios Limited
(709) 634-3302

2000 08 16                              10:05 a.m.