Minister announces EDGE status for two companies

Industry, Trade and Rural Development Minister Beaton Tulk has announced that Nova Plastics Products Inc. of Corner Brook and FishKing Equipment Inc. of Cape Broyle have received Economic Diversification and Growth Enterprises (EDGE) status.

"Nova Plastics and FishKing are two examples of innovative businesses located in regions across Newfoundland and Labrador," said Minister Tulk. "Both have identified a demand in a niche market and are using expertise to create products that meet that demand."

Minister Tulk made the announcement Friday afternoon during an address to participants of the Profit Through Plastics symposium in Corner Brook.

Nova Plastics Products Inc. received EDGE status to establish a manufacturing plant in Corner Brook. The plant will focus on manufacturing from recyclable plastic, lumber substitutes and flooring products for industrial applications. These products will offer a durable alternative to wood and concrete products. The plant will begin construction late this year. Nova Plastics expects to employ 30-40 full time workers and hopes to eventually move into the lucrative U.S. market.

FishKing Equipment Inc. received EDGE status to build a manufacturing plant in Cape Broyle. The plant will produce the only fully computerized fish splitting machines in the world. The company has already established a relationship with a Norwegian company, Nordic Supply, that has been testing the machine in a commercial environment for the past couple of years. FishKing has now moved into the commercialization stage. It will manufacture the fish splitting machines at a rate of one per month and will target the European market. The company currently employs 11 full time staff and expects to employ a total of 16 people within three years.

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: Josephine Cheeseman, Communications, (709) 729-4570.

2001 02 26                                              9:20 a.m.