Bell Island manufacturing company receives EDGE status

Industry, Trade and Rural Development Minister Judy Foote today announced that Island Manufacturing and Galvanizing Inc., a manufacturing facility on Bell Island, has received EDGE status to assist with the company�s growth and success.

"In our Renewal Strategy for Jobs and Growth, government identified the small scale manufacturing sector as a strategic growth opportunity. In 2002, manufacturing shipments were worth $2.23 billion and employed over 17,000 people. The sector is increasingly becoming a more important part of our economy, especially in rural Newfoundland and Labrador," said Minister Foote. "With support from government through incentives like our EDGE program, small scale manufacturing enterprises such as Island Manufacturing and Galvanizing are creating new employment opportunities for our people throughout the province."

Island Manufacturing and Galvanizing Inc. began operations on Bell Island in April 2003. The company�s part-owner and a native of Newfoundland and Labrador, Kevin George, manages the plant. The company currently employs nine people and expects to hire four additional employees within the next six months.

Island Manufacturing and Galvanizing Inc. manufactures hot dipped galvanizing scaffolding components for modular system scaffolding. The majority of these products will be exported to its parent company, Don Fry Scaffolding Services Inc. in Ontario. The remaining product will be sold or rented across Newfoundland and Labrador. Hot dipped galvanizing is a cost-effective corrosion control process for most major industrial applications. Currently there are no other manufacturers of scaffolding systems in Atlantic Canada.

"Island Manufacturing and Galvanizing has created a dynamic new small industry on Bell Island, resulting in new employment opportunities for people who traditionally depended on seasonal work," said Jim Walsh, MHA for Conception Bay East - Bell Island, and Minister of Works, Services and Transportation. "EDGE status will allow it to invest further in the local area and help it expand over time."

The EDGE program is available to both new and expanding businesses in Newfoundland and Labrador. Companies are eligible for a 10-year tax holiday from provincial corporate income tax and provincial payroll tax, followed by a five year phase-in of these taxes, as well as unserviced Crown land for a nominal fee and access to a government facilitator who will help obtain the required permits and licences associated with the new or expanding business activity. The tax holiday increases to 15 years for companies that establish or expand outside the Northeast Avalon region. In addition, many of the province's municipalities participate in the EDGE program and offer the same tax holidays from local property and/or local business taxes. EDGE also includes a 50 per cent provincial government rebate on federal corporate income taxes paid by EDGE designated companies. This rebate, along with the 100 per cent rebate on provincial corporate income tax, gives the program its �double EDGE�.

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

2003 09 15                                         10:05 a.m.