Funding announced for Port au Port business

Industry, Trade and Rural Development Minister Judy Foote today announced that Erickson�s Workshop in Port-au-Port received an equity investment of $50,000 from the department to help modernize and expand its operations, resulting in the creation of two new full-time and one seasonal position. Total cost of the initiative is $133,360. The funding was made available to the wood manufacturing enterprise through the department�s Small Business Seed Capital Equity Program.

"Government identified the wood products industry as a strategic growth sector in its Renewal Strategy for Jobs and Growth," said Industry, Trade and Rural Development Minister Judy Foote. "In particular, value-added manufacturing opportunities for lumber and specialty wood products offer considerable growth potential in this province and Erickson�s Workshop is an example of a company that is capitalizing on that opportunity and achieving success."

Erickson�s Workshop will use the funding to purchase new equipment that will supplement existing equipment and reduce costs and fabrication time. In addition, the company intends to renovate and expand its manufacturing facility in an effort to support its growth.

"More than 60 per cent of the 26,000 new jobs created in our province between 1996 and 2002 have been created in communities outside the St. John�s region," said Health and Community Services Minister Gerald Smith, MHA for Port-au-Port. "Erickson�s Workshop is a great example of a small business that is creating new wealth and new jobs in rural Newfoundland and Labrador."

Erickson�s Workshop was established in 1991 as a wood working shop producing high-end furniture and kitchen cabinets. In addition to custom orders, in recent years, the company has focused its efforts on manufacturing four main products: cabinet doors, interior passage doors, hand carved signs and counter tops.

The Department of Industry, Trade and Rural Development established the Small Business Seed Capital Equity Program on April 1, 2000 in direct response to representations made by the business community during government�s jobs and growth consultations. The program makes equity contributions of up to $50,000 available, on a matching basis, to new entrepreneurs or existing small businesses seeking expansion opportunities in areas of the economy that offer significant growth potential.

Media contact: Tansy Mundon, Communications, (709) 729-4570

2003 06 02                                        9:45 a.m.