EDGE status awarded to Gander aerospace company

Industry, Trade and Rural Development Minister Judy Foote has announced that Economic Diversification and Growth Enterprises (EDGE) status has been awarded to Gander Aerospace Manufacturing Inc. to assist with the growth of the company�s manufacturing facility and aerospace inspection services.

"The Department of Industry, Trade and Rural Development is proud to support Gander Aerospace Manufacturing Inc. through the EDGE program," said Minister Foote. "Creating a strong and positive business environment is an important part of government�s Renewal Strategy for Jobs and Growth. Through EDGE, we are able to help give companies such as Gander Aerospace Manufacturing Inc. the support they need to grow their business and create new jobs."

Gander Aerospace Manufacturing Inc. currently employs 12 people. The company manufactures sheet metal parts and components for aerospace applications and also provides inspection services for the aerospace industry. The company was established in direct response to the demand for sheet metal and inspection services by CHC Composites Inc., an aerospace company also located in Gander.

"Gander Aerospace is an example of how government�s investment in the aerospace industry is working and helping to expand the industry in Newfoundland and Labrador," said Minister Foote. "Our initial investment in CHC Composites in 1998 was a strategic cooperative investment aimed toward establishing an aerospace industry in the province. Through the investment, government and CHC have come together to create economic development and additional manufacturing opportunities for the area, including the establishment of Gander Aerospace."

Aerospace composites parts manufacturers, like CHC Composites Inc., generally out-source sheet metal fabrication work since it is not part of their core business activity and is more efficiently done by firms that specialize in this form of manufacturing. As well, inspection services for manufactured aviation parts are normally performed by an inspection team independent of the manufacturing company prior to shipment. Until Gander Aerospace was established, CHC Composites had to purchase its sheet metal parts and inspection services from companies outside the province. "Gander Aerospace is therefore bringing new business, new wealth and new jobs to the province," said Minister Foote.

"Gander Aerospace Manufacturing is an excellent example of the talent and expertise available in the aerospace industry in Newfoundland and Labrador," said Sandra Kelly, MHA for Gander. "The company will help expand and diversify the aerospace industry in Gander."

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 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 similar 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 06 30                                     11:55 a.m.