Natural Resources
May 15, 2013
Working Capital to Secure Wood Inventory Supply for Burton’s Cove Logging
To assist with productivity and operational efficiencies within the sawmill operations, the Provincial Government has provided working capital of $475,000 to Burton’s Cove Logging and Lumber Limited (Burton’s Cove).
“Burton’s Cove supplies the local market with over 95 per cent of its products supporting construction, retail and commercial operations in the province,” said the Honourable Keith Hutchings, Minister of Innovation, Business and Rural Development. “The loan will provide necessary capital to secure inventory and support Burton’s Cove with their arrangement for sawlogs from their main supplier, Corner Brook Pulp and Paper. This funding represents a strategic investment in support of the forestry industry.”
As a fully-integrated sawmill, Burton’s Cove has been in operation for 25 years and employs more than 35 people. Increased production at Burton’s Cove has required the additional supply of sawlogs to achieve production efficiencies and seasonal supply interruptions.
“Our department has been working closely with Burton’s Cove Logging and Lumber since the business started 25 years ago,” said Honourable Tom Marshall, Minister of Natural Resources and the Minister Responsible for the Forestry and Agrifoods Agency. “The company has grown from a small backyard sawmill to a modern, integrated operation and an economic generator in the region. I am very pleased to see the Provincial Government’s continued support of the forestry industry.”
The working capital will provide Burton’s Cove with an eight-week inventory of approximately 6,300 cubic metres of wood.
“Harvesting opportunities are limited in the spring, and it is critical for Burton’s Cove to have an adequate wood supply to ensure there are no delays or uncertainty with our inventory,” said Zeta Osmond, Burton’s Cove Logging and Lumber. “We are pleased with the investment by government which will help us deal with supply challenges and ensure there are no interruptions in operations.”
Working capital was funded through the Small and Medium-sized Enterprise Fund. Administered through the Department of Innovation, Business and Rural Development, the program provides financial assistance to small and medium-sized businesses in strategic sectors.
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Media contacts:
| Heather MacLean Director of Communications Department of Innovation, Business and Rural Development 709-729-4570, 637-4137 heathermaclean@gov.nl.ca |
Diana Quinton Director of Communications Department of Natural Resources 709-729-5282, 631-8155 dianaquinton@gov.nl.ca |
| Zeta Osmond Burton’s Cove Logging and Lumber 709-455-4200 |
2013 05 15 12:15 p.m.