Deals signed on Shanghai portion of Team Canada mission

Sandra C. Kelly, on behalf of Premier Roger Grimes, embarked on the Team Canada trade mission to China last week with10 provincial companies . The mission was in Shanghai on Wednesday and Thursday, where a number of deals were signed during an official ceremony with the Prime Minister. 

Newfoundland and Labrador Development Corporation (NLDC) signed a $2.5 million contract with Goodard Electronics Group of Suzhou Province for investment in NLDC's International Manufacturing Centre's Venture Capital Fund.

The centre will provide international manufacturers with a duty-free zone to import components, assemble high-tech products, distribute to markets in North America and Europe, and to offer product maintenance service to customers. 

Also signed was a memorandum of understanding (MOU) between Bae-Newplan Group Ltd. of Mount Pearl, its partner companies Woodpick Enterprises Ltd. of Wareham and Newfoundland Marketing International Oceans Inc. of St. John's, and several Chinese partners. The Chinese companies include Zhejiang Ocean and Fisheries Bureau and its partners Zhejiang Zhoushan District Fishery Group Corp. and Zhoushan General Ocean Fishery Co. Ltd.

Through the MOU, the parties plan to pursue projects in the fisheries and oceans sector, such as fish harvesting and processing, under-utilized species and new product market development, fish smoking and aquaculture. The first step in the partnership will be a series of viability studies on market analysis, technical, economic and commercial feasibility and potential joint venture arrangements, which will be carried out immediately. According to the business partners involved in the signing, the value of the studies is approximately $1 million and the overall project value is approximately $80 million.

The third agreement signed in Shanghai involved Friede Goldman Newfoundland Ltd., which signed an MOU with the Zhejiang Zhoushan International Fishery General Co. of Zhejiang Province to construct up to 60 fishing vessels in Marystown and to provide associated equipment, technology transfer and training. This multi-million dollar project will be completed over 15 years. 

Finally, the Professional Institute of Applied Technology of St. John's signed an MOU with the Zhejiang Ocean University of Zhoushan to provide information technology training to the university's faculty and graduates. The project will commence in July of this year and the estimated revenues that will be generated over the next three years are approximately $3 million. 

"It is exciting to see new partnerships developing between local companies and their Chinese counterparts," said Ms. Kelly. "Deals such as these emphasize the benefits international trade missions such as Team Canada create for local companies and will no doubt help strengthen our province's business relationship with China."

After leaving Shanghai, the Team Canada delegation is traveling to Hong Kong for the final phase of the mission.

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

2001 02 15                                                             1:40 p.m.