August 25, 2009
Another Significant Investment in Sawmill Industry
The Provincial Government is continuing its support
of the province�s sawmill industry with an investment of
$500,000 in plant modernization for Burton�s Cove
Logging and Lumber Limited in White Bay. This is
government�s second direct investment in sawmill
operations through the Forest Industry Diversification
Program this month.
"It�s important to pursue opportunities for forest
industry expansion and diversification in response to
the changing market demands," said the Honourable Kathy
Dunderdale, Minister of Natural Resources and Minister
Responsible for the Forestry and Agrifoods Agency.
"Through this investment, we are maintaining employment
for this company�s employees and helping to ensure an
economically-viable future for the sawmill sector."
Burton�s Cove Logging and Lumber Limited will receive
$500,000 in the form of equity financing to assist with
the purchase and installation of new equipment and to
modernize the plant, ensuring the continued employment
of the company�s 42 full-time employees. Modernization
will enable the company to increase its lumber
processing capacity, which will lead to increased
productivity, efficiency and revenue. With this
investment, the Provincial Government is purchasing 10
non-voting common shares in the company, each valued at
$50,000. Redemption of the shares will occur over a
five-year period, beginning in 2016.
"I am extremely pleased with this announcement in
support of the sawmill industry in my district," said
Darryl Kelly, MHA for Humber Valley. "Once again, it
shows our government's commitment to rural communities
and to the logging industry."
"We are extremely pleased with this investment in our
company and in the forest industry in this region," said
Fred Osmond, owner/operator of Burton�s Cove Logging and
Lumber. "This funding enables us to modernize our plant
so that we are able to compete in this market."
Last week, the Provincial Government announced its
investment of $10 million in Holson Forest Products on
the Northern Peninsula as part of the ongoing commitment
to the province�s sawmill industry through targeted
investment. The Forest Industry Diversification Program
is designed to identify areas for growth and
diversification, as well as new market opportunities.
Funding under this program provides sawmill operators
with capital for new infrastructure, technology and
equipment towards industry innovation and modernization.
"Our companies must have the ability to compete in a
changing global environment to ensure the continued
sustainable development of our forest industry," said
Minister Dunderdale. "Together with industry, we are
building on the past successes of these companies to
ensure the long-term viability of this sector."
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