Official opening in Iceland for model home using local products

An official opening is taking place in Selfoss, Iceland today for a model home constructed by Icelandic contractor SG-Hus, using Newfoundland and Labrador products and technology. The project, which was coordinated by the Eastern Newfoundland Home Builders� Association (ENHBA), will market Newfoundland and Labrador building products and services.

On hand for the official opening and ribbon cutting are: Richard T�tu, Canada�s Ambassador to Iceland; �rni Magn�sson, Iceland�s Minister of Social Affairs; Jack Byrne, Newfoundland and Labrador�s Minister of Municipal and Provincial Affairs; Jane Morgan, president of the ENHBA; Rhonda Day, chief executive officer of the ENHBA; Oskar G. Jonsson, general manager, SG-Hus; Iromi Amit, manager, Canada Mortgage and Housing Corporation International, Atlantic Region; and Mike Howley, the Atlantic Canada Opportunities Agency�s (ACOA�s) account manager for this project. An open house for the public in Iceland to view the model home will take place from August 19-20.

ACOA has been involved with the initiative for the past few years, and is investing $172,545 towards the marketing and promotion of the model home and the local building products used for its construction.

�This is a unique opportunity to showcase the expertise of Newfoundland and Labrador companies in the Icelandic market and to build stronger partnerships between companies in these two places,� said Joseph McGuire, Minister of ACOA. �For the past number of years, the Atlantic region has been making great strides in export development, and the model home in Iceland will help support further efforts to reach global markets.�

The ENHBA, along with federal and provincial government representatives, attended an international home building trade show in Iceland a few years ago to assess opportunities for Newfoundland and Labrador companies. This visit identified a strong level of interest in local building products and services and in joint venturing between Icelandic and local firms to supply European markets. From there, the idea of constructing a model home took root.

�I congratulate the Eastern Newfoundland Home Builders� Association and its members for establishing this joint venture,� said Minister Byrne, on behalf of Kathy Dunderdale, Minister of Innovation, Trade and Rural Development, Government of Newfoundland and Labrador, whose department has supported the consortium as a way for smaller Newfoundland and Labrador companies to compete successfully as a group in export markets. �Iceland is similar in size to Newfoundland, imports much of its homebuilding products, and has a growing market for new housing. I look forward to increased trade between our two countries.�

Canadian housing technologies have rapidly spread in many countries over the last decade. In Iceland, where timber has to be imported, concrete is often used for home construction, although there are some wood frame houses.

�Through this partnership, Icelanders will have an easier way to access the benefits of timber frame home construction, such as its excellent quality, faster construction, lower cost and energy efficiency,� said Rhonda Day, chief executive officer, ENHBA. �The model home enables people in Iceland to see first hand the kind of house that can be built in cooperation with our Newfoundland and Labrador companies.�

The Newfoundland Building Supply Consortium has been established to supply market needs and serve as a focal point for ongoing market development. Members include: Jamestown Lumber, LeDrew's Lumber, NuWay Kitchens, Terra Nova Trusses, Weathershore Windows, New Wood Manufacturing, J T Martin & Sons, Carew Landscaping, K & P Contracting, Colette Nap Architect, Garnet Kindervater Limited and AIMS Limited.

The model home is the first in Iceland to be registered as a Super E� home. Super E� members construct high-quality, energy-efficient homes to the Super E� standard, which is based upon the Canadian R-2000 standard and adapted for local climates. Each Super E� home is registered, tested and recognized by the Government of Canada with a certificate of recognition. Super E� members comprise partnerships between Canadian exporters and builders in export markets.
Other partners in this initiative include: Industry Canada, International Trade Canada (Canadian Embassy in Iceland), Canada Mortgage and Housing Corporation and Natural Resources Canada.

FOR BROADCAST USE ONLY:

An official opening is taking place in Selfoss, Iceland today for a model home constructed by Icelandic contractor SG-Hus using Newfoundland and Labrador products and technology. The project was coordinated by the Eastern Newfoundland Home Builders� Association to market Newfoundland and Labrador building products and services. In Iceland, where timber has to be imported, concrete is often used for home construction.

The Atlantic Canada Opportunities Agency has been involved with the initiative for the past few years, and is investing $172,545 towards the marketing and promotion of the model home and the local building products used for its construction.

A consortium of companies in the province�s building products sector has been established to supply market needs and serve as a focal point for ongoing market development.

For more information, please contact:

Val�rie Poulin
Director of Communications
Office of the Honourable Joseph McGuire
Minister of the Atlantic Canada Opportunities Agency
(613) 941-7241

Doug Burgess
Director, Public Affairs
ACOA
(709) 772-2935

Rhonda Day
Chief Executive Officer
R-2000 Regional Manager
Eastern Newfoundland Home Builders� Association
(709) 753-2000

Kristbjorg �g�stsd�ttir
Trade Commissioner, Canadian Embassy in Iceland
(354) 575-6505
kristbjorg.agustsdottir@international.gc.ca

Heather MacLean
Communications
Government of Newfoundland and Labrador
(709) 729-1983 or690-2498

Photo #1 &#2: A model home constructed by Icelandic contractor SG-Hus, using Newfoundland and Labrador products and technology

Photo#3: Cutting the ribbon for the official opening of the model home are (l-r): Arni Magnusson, Minister of Social Affairs, Iceland; Richard Tetu, Canadian Ambassador to Iceland; Jack Byrne, Minister of Municipal and Provincial Affairs, Government of Newfoundland and Labrador; Oskar Jonsson, General Manager of the Icelandic contracting company SGHus.
 

BACKGROUNDER

Newfoundland Building Supply Consortium

The Newfoundland Building Supply Consortium is a strategic alliance comprising 12 companies interested in pursuing new export opportunities for the construction of Canadian wood frame housing. The Eastern Newfoundland Home Builders� Association has acted as a sponsor for the initiative by serving as the administrator for financing and use of facilities, and by encouraging participation of its members.

The companies in the consortium are all well-established and leading businesses that have the capacity and resources necessary to participate in this initiative. A few of the companies are already exporting products or services, some have been preparing to export, and several have no experience exporting.

The consortium was created in order to pool the capabilities and expertise of the companies, each of which has unique skill sets or products to bring to the group. Collectively, they can supply approximately 75% of the products and services needed to build a complete house. Companies involved include:

After considerable research and visits by company representatives, Iceland was identified as a logical �country of choice� for the consortium to start exporting. Like Newfoundland and Labrador, it is located in the North Atlantic, is similar in size and has a small population. Iceland has high per capita incomes, and imports most of its homebuilding products. The housing market in Iceland is growing for both new home construction and renovations. Annually, housing starts range from 1,500 to 1,600, which are mostly around the Reykjavik area. Iceland represents a market where consortium members can start gradually, develop relationships with Icelandic partners and begin exporting with minimal risk.

During the first visit to Iceland in 2001, representatives of the Newfoundland Building Supply Consortium received an excellent reception, especially with the Federation of Icelandic Industries. The federation expressed interest in timber frame construction products and services for Iceland, as well as forming an alliance that could supply such products to other Scandinavian countries and the European Union.

Since then, representatives of the consortium have visited Iceland again, there have been return visits to Newfoundland and Labrador by the Icelandic companies, and strong business relationships have been formed.

A joint venture arrangement was established with SG`Hus, a reputable Icelandic contractor, to construct the model Canadian wood frame house in Selfoss. Other contractors are also interested in building Canadian-style homes in partnership with the consortium, and there is strong interest from building supply distributors and wholesalers in importing products from Newfoundland and Labrador.

2005 08 15                   1:00 p.m.