Clothing manufacturing operation opens its doors in Change Islands

The Town of Change Islands celebrated a significant new development in its economy today with the official opening of an apparel manufacturing business, Mediwear Inc., which is creating 16 new jobs in the community.

The business, which is owned and operated by the Town of Change Islands, will produce two identical lines of clothing; one is being marketed towards medical institutions, companies and professionals and the other is targeted towards the general consumer as lounge wear.

The project was supported through the Canada-Newfoundland Agreement for the Economic Development Component of the Canadian Fisheries Adjustment and Restructuring Initiative (EDC), which contributed $39,275 to the initiative. The project also received $146,428 under the Targeted Wage Subsidy program of the Canada- Newfoundland and Labrador Labour Market Development Agreement. In addition, the Department of Industry, Trade and Rural Development provided $50,000 through its Small Business Seed Capital Equity Program and $15,000 through its Business Market Development Program.

"This project is an excellent example of how a rural community can create new employment opportunities for its residents by being visionary, proactive and determined in its efforts to bring about positive change," noted Industry, Trade and Rural Development Minister Beaton Tulk. "The manufacturing sector was identified as an area of significant growth potential in our Final Report on Jobs and Growth. Government is committed to further development of that potential and to implementing the small scale manufacturing strategy we adopted in 1999."

"The federal government is pleased to support this new manufacturing initiative, which has the potential to make a significant impact on Change Islands. It is great to see communities finding innovative ways to diversify and establish new industries," said Rick Comerford, director general of program development and delivery with the Atlantic Canada Opportunities Agency (ACOA), on behalf of Brian Tobin, Minister of Industry, and Robert Thibault, Minister of State for ACOA.

"The Town of Change Islands is very excited to be officially opening Mediwear Inc.," said Doreen Hart, mayor of Change Islands. "This marks a new era in our community�s development and we look forward to seeing the benefits that this business will have for our residents."

The products being manufactured, such as scrubs, hats, uniforms and linens, will initially be marketed throughout the province. Mediwear Inc. intends to pursue export opportunities in the future.

The three-year $81.25 million Canada-Newfoundland Agreement for the Economic Development Component of the Canadian Fisheries Adjustment and Restructuring Initiative (EDC) was signed two years ago. The agreement is designed to build upon the strategic plans and priorities of the regional economic development boards to improve the long-term economic climate in regions impacted by the downturn in the groundfish industry.

The agreement is delivered federally by ACOA and provincially by the Department of Industry, Trade and Rural Development.

2001 08 29                                                  10:40 a.m.