Industrial Fabrication Facility Ready for Expansion
with Support from Provincial Government

The Cahill Group of Companies is set to expand its pipe fabrication facility in St. John's with the assistance of $500,000 from the Provincial Government's Oil and Gas Manufacturing and Services Export Development Fund.

"Our government's investment will assist the Cahill Group of Companies to increase capacity, add to its capabilities, and set its sights on new opportunities to supply external markets from its base here in the province," said the Honourable Ross Wiseman, Minister of Business. "This is another great example of a local company that is actively building on and exporting the world-class expertise found in Newfoundland and Labrador's dynamic oil and gas supply community."

The 10,000 square-foot expansion is the second part of a two-phase project that will enable Cahill to bring its traditional fabrication and spooling work into one location, and provide the space and specialized equipment necessary to handle the production of heavy-wall carbon and light- and heavy-wall chrome alloy steel spools. Prior to this expansion, the company often had to improvise when carrying out large projects by renting temporary facilities, sub-contracting to out-of-province companies, or utilizing lay down areas near project sites.

"The expansion to the fabrication facility will enable the Cahill Group to export products, based on expertise available in the province, to other areas of Canada including Northern Alberta," said Fred Cahill, Owner and President of the Cahill Group of Companies. "It will also allow us to competitively bid on work that has traditionally been done outside the province."

Tom Osborne, MHA for St. John's South said, "This is another example of the many spin-offs from the oil industry for our province. The expansion will provide several benefits to the region including employment and a stronger expertise that will allow the company to export to other parts of the world."

The Oil and Gas Manufacturing and Services Export Development Fund supports export-based opportunities for equipment and services for the oil and gas industry, which better enables companies to take advantage of opportunities beyond local offshore projects. The program was renewed in Budget 2010: The Right Investments — For Our Children and Our Future , with a $3 million investment over the next two years.

"Through this program, our government is contributing to the strength and diversification of the province's oil and gas supply and service community," said Minister Wiseman. "The Department of Business will continue to support opportunities that foster export growth and technology transfer within the industry."

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2010 08 13                                                   11:00 a.m.