July 29, 2009
Fabrication Facility Set for Argentia
Argentia is the site of a new manufacturing operation
that will employ approximately 130 people, supplying specialized steel
pressure containers to mining, oil and gas, and other industries.
Alberta-based JV Driver Corporation will establish the facility, with
the total value of the start-up of the operation estimated at $10
million, including a contribution of $4 million from the Provincial
Government�s Business Attraction Fund.
"Our government is extremely pleased to support this
significant, new business venture, and I welcome JV Driver�s expansion
to the province," said the Honourable Ross Wiseman, Minister of
Business. "Attracting this new business will create many well-paying,
technical and skilled trade jobs in the Placentia area, as well as
spin-off activity for local companies through subcontracting and
JV Driver is partnering with local firm D.F. Barnes
Group (DFB) to establish the manufacturing operation, which will be
called Argentia Metalworks. Over the next five years, Argentia
Metalworks expects to create approximately 130 new jobs, most of which
will be in welding, equipment operation and other skilled trades. Close
to 60 of those workers are expected to be hired by the end of 2010. JV
Driver has acquired an existing 50,000 square-foot building that will be
renovated for the facility.
Argentia Metalworks will have the capacity to design
and manufacture pressure vessels primarily for use in resource industry
sectors. Pressure vessels are special steel containers built to operate
under very high pressure, and are used extensively in mining, oil and
gas extraction and refining, petrochemical plants, as storage tanks for
liquefied gases, and other industrial uses. The fabrication of pressure
vessels involves specialized welding capabilities and facilities, and
the vessels require rigorous testing and approvals.
"We are enthusiastic about Newfoundland and Labrador�s
growing industrial activity and business prospects," said Peter Glass,
Vice-President of Strategic Alliances with JV Driver. "Through our
partnership with DFB, we are very pleased to locate a new facility in
Argentia, a move that will expand our company�s market reach."
The Argentia operation will capitalize on the growing
demand for pressure vessels from Newfoundland and Labrador�s industrial
projects and markets elsewhere in Canada and the U.S. Gulf of Mexico.
Argentia Metalworks will service the pressure vessel market end-to-end,
from design and fabrication, to delivery and installation.
JV Driver is one of the largest industrial
construction companies in Western Canada with a track record of
involvement in the oil and gas, energy, petrochemical, mining and forest
products industries. The company seized the opportunity to expand to
Newfoundland and Labrador�s industrial market because of access to
fabrication capabilities, a trained labour force, local expertise
provided by DFB, and capital funding.
This venture will also add to the economic activity
generated in the area from Vale Inco�s hydromet processing plant at
nearby Long Harbour, which is in the construction phase.
"I am delighted to welcome Argentia Metalworks to
Argentia," said Felix Collins, MHA, Placentia-St. Mary�s. "Along with
the Vale Inco related work, this is a further indicator of the
rejuvenation of the area�s economy. Not only will it be another economic
boost to this area, but it will benefit all regions of the district of
Placentia-St.Mary�s. I am pleased that our government is making such a
significant commitment to this area and I extend my best wishes to the
company for a long and successful stay in Argentia."
The Provincial Government�s investment of $4 million
was made available through the Business Attraction Fund, and will be a
combination of redeemable preferred shares in the joint venture company
and a grant. A total of $1 million of this funding is tied to the
company achieving employment targets. As well, half of government�s
contribution is designated for supporting costs of training workers and
acquiring specialized equipment.