Secondary wood processing facility receives boost

Industry, Trade and Rural Development Minister Judy Foote today announced that O.K. Ventures Limited has received $50,000 in equity financing to establish a secondary wood production facility in Milton. The funding was made available to the company through the department�s Small Business Seed Capital Equity Program. The company will invest $50,000 to match government�s investment.

"Government identified the forestry industry as a strategic growth opportunity in its Renewal Strategy for Jobs and Growth, especially for rural Newfoundland and Labrador. Value-added secondary wood processing opportunities were targeted for particular attention," said Minister Foote. "O.K. Ventures is a good example of a company that is taking advantage of these opportunities and in doing so, helping to diversify and strengthen our rural economy."

O.K. Ventures Limited is a diversified wood operation that includes the harvesting, sawing and production of both softwood and hardwood products. Government�s equity investment will help the company expand and create three new full-time and eight new part-time seasonal jobs. O.K. Ventures� expanded operations will include the manufacturing of hardwood products, including flooring, paneling and cabinets, primarily from underutilized birch slabs that are currently sold as firewood.

The Department of Industry, Trade and Rural Development established a new $2 million Small Business Seed Capital Equity Program on April 1, 2000 in direct response to the jobs and growth consultations. This 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                                       2:00 p.m.