WIDEBODY
RV INDUSTRIES INC.
MAKING A BETTER INVESTOR'S TOOLKIT
Making the decision to move investment capital or technology and locate or re-locate a business has always been regarded as one of the most difficult choices a business or entrepreneur can make. One of the most dramatic changes in business since the advent of "globalization" is the way business prospectors now make investment decisions. The rewards can be worth it, but the process is still very competitive. Responding to a world-wide move to reduce legislative and tax barriers, regional governments have been moving toward reducing "red tape" to attract business.
Newfoundland and Labrador responded to the challenge and in 1995, the EDGE program emerged–the culmination of government's efforts to create a climate conducive to business investment. From the beginning, EDGE has been one of the most important tools in the Province's investor's kit. Site selectors and business prospectors get a clear idea that we are serious about attracting new business.
FACILITATOR - A KEY TO SUCCESS
The basic program offers tax relief and the lease of unserviced crown land for a nominal fee to new or expanding business. The program is administered by the Business Analysis Division of the Department of Industry, Trade and Technology which provides the services of a faciltator to handle one-on-one details. Cutting through red tape, this designated facilitator has made a big difference to EDGE business success.
LOTEK MARINE RECHNOLOGIES INC.
A prominent EDGE company, Lotek Marine Technologies was featured in the March 1998 issue of the Globe and Mail Report on Business Magazine. Capitalizating on the high concentration of fisheries and marine offices and facilities in the Atlantic Region, this Newmarket, Ontario company opened an office in Newfoundland to develop marine wildlife monitoring and tracking technology. The Company has found a new market niche in eastern Canada.
CANADIAN FUSED HOMES
The same issue of the Report on Business reported that Canadian Fused Homes, an Ontario based company, is looking to relocate its construction panel business to Corner Brook. The Company decided to move shop when they realized that Newfoundland and Labrador not only was closer to its Western European markets, but that trade skills and political will would help the company succeed.
CHIANTI FOOD PROCESSORS INC.
Ontario-based Chianti Food Processors invested $1 million in equipment and renovations to convert part of the St. Anthony fish plant to a value added processing facility. Chianti now produces three varieties of calamari (squid) products under the brand Ocean Jewel for the Canadian, U.S. and Latin American markets. Chianti found that the species of squid available in Newfoundland contributes to a finished product that is superior in quality and price to other products on the market today.
The company is partnering its marketing efforts with Expack Seafoods which has developed a calamari enzyme tenderization method that adds to the value of the product. In 1997, Expack had sales in excess of $125 million. Chianti anticipates an increase in the 35 workers it currently employs as new product lines are added. The development of two new "breaded strip" and "oven-ready" varieties is being planned as well as the secondary processing of shrimp. Chianti expects to receive large orders from supermarket and restaurant buyers as a result of its efforts at the recent Boston seafood show.
WIDEBODY
RV INDUSTRIES INC.
Wide Body RV Industries of Bishop's Falls manufactures Islander type recreational vehicles for Eastern Canadian and US markets. With the aid of the Bishop's Falls Development Corporation, the Company has renovated the former CN Car Shop into its base of operations and to date has invested $3 million and employed 35 workers.
The Islander type motor home is a Class "B" motor home which is unparalleled in the industry and has surpassed all required specifications. To maintain the control and integrity of production, all aspects of the RV construction are carried out in-house, including the fiberglass construction. The Company currently has orders for more units than its production capacity allows it to deliver.
PECTOR FUELING AUTOMATION
EDGE Induced Employment and Investment
Note: Employment and investment are projections to year |
Pector Fueling Automation Inc. saw an opportunity in Canada for their company's innovative technology and decided to locate their production facility in St. John's.
Through this innovation, oil and gas companies can avail of technology that will allow them to efficiently control, monitor and dispense their inventory. In addition, Pector also produces systems for commercial truck fueling, storage facilities and Vehicle Recognition Systems that improves the safe and cost-effective automation of refueling vehicles.
RESULTS
Since the edge program was initiated in 1995 some 68 companies have invested more than $70 million and created over 1,200 permanent jobs in the Province. By the end of their third year of operation these companies are expected to double their investment in the Province and create a total of 2,841 jobs .
TAX ADVANTAGES EXTENDED
In 1997 incentives offered under the EDGE Legislation were affected by the
harmonization of the Federal Goods and Services Tax (GST) and the Provincial Retail Sales
Tax (RST) (effective April 1, 1997). The new Harmonized Sales Tax (HST) provides for full
Input Tax Credits to Newfoundland and Labrador businesses. For existing and potential EDGE
companies, the change simply means that the sales tax exemption once exclusively available
under EDGE now applies to all businesses in the province.
For further information on EDGE contact:
Department of Industry, Trade and Technology -
Business Analysis Division
Tel: (709) 729-5066
Fax: (709) 729-5936
1-800-563-2299
URL: http://www.success.nfld.net
E-mail: bcondon@ditt.gov.nf.ca
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