Investment announced for Chapel Arm woodcraft business

Industry, Trade and Rural Development Minister Judy Foote today announced that Chapel Arm Woodcrafts Limited of Chapel Arm in Trinity Bay has received an equity investment of $30,900 to modernize and expand its manufacturing facility. The funding will maintain two full-time positions and create one new seasonal position and was made available through the department�s Small Business Seed Capital Equity Program. The company will invest $30,900 to match government�s investment. Minister Foote made the announcement during a tour of the company today.

"Government identified the wood products industry as a strategic growth sector in its Renewal Strategy for Jobs and Growth," said Minister Foote. "Specialty wood products have considerable business and employment potential in this province and Chapel Arm Woodcrafts, with its product line of high quality turned wooden vases, candle sticks and bowls made from locally harvested lumber, is an example of a small business in rural Newfoundland and Labrador that has been able to successfully tap into lucrative tourism and export markets."

Chapel Arm Woodcrafts began as a home-based business in 1995 shortly after the collapse of the cod fishery along the Northeast coast. Owners Gorden and Theresa Reid have been able to turn a seasonal part-time business into a year-round operation over a relatively short period of time. The funding announced today will help pay for new woodworking equipment, a drying kiln and a storage building to season locally harvested birch. The company�s products are carried in craft shops across the province and exported throughout Atlantic Canada.

The province�s exports have more than tripled since 1992, growing from $2.8 billion to an estimated $9.7 billion in 2002.

"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 Percy Barrett, MHA for Bellevue. "Chapel Arm Woodcrafts is a good example of how rural entrepreneurs are able to capitalize on their skills and recognize entrepreneurial opportunities."

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 07 10                                   11:05 a.m.