Why Trade Matters
Success Stories
Spotlight on Innovative Acadian Companies
Throughout 2004, Acadians all around the world, from New Brunswick and Newfoundland and Labrador to the Magdalen Islands, France and Louisiana, have been celebrating 400 years of French presence in America. They are commemorating the arrival from France in 1604 of Pierre Dugua, Sieur de Mons, who founded the first French colony, Acadia, on the Nova Scotia peninsula.
The enterprise of Acadians in Atlantic Canada has developed beyond the resource sector into many areas from management, law and consulting to specialized services and high-tech product manufacturing. Acadians head a growing number of dynamic small and medium-sized businesses that, through their innovation, are expanding into foreign markets.
In the context of the Atlantic Economic Summit, held September 28 and 29 in Moncton under the auspices of the Atlantic Provinces Economic Council, this issue of Success Stories features Acadian companies that have enjoyed success internationally.
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Scoring Big South of the Border
Nik Design Inc., Edmunston,
New Brunswick
The Naismith Memorial Basketball Hall of Fame in Springfield, Massachusetts, features a spherical atrium hosting a 200-seat viewing theatre and a full-size basketball court. Suspended from the 24-metre ceiling is the sphere's showstopper: an eight-tonne, state-of-the-art, interactive scoreboard, constructed in New Brunswick by Nik Design Inc. The scoreboard serves as the museum's focal point, displaying video footage of basketball's greatest moments and biographical sketches of players, and providing lighting and sound for theatrical productions.
Based in Edmunston, Nik Design manufactures a range of LED (light-emitting diode) scoreboards, including the VictO'Ree, a portable, Palm computer-controlled unit. More than half of the company's production is exported, primarily to major sporting goods resellers in the United States.
According to Tim Shaw, President of Nik Design, federal government services have played a key role in the company's expansion in the U.S. It was his participation in a trade mission to Boston, organized by the Atlantic Canada Opportunities Agency, and a subsequent referral by the Canadian Consulate in Boston, that led to the Hall of Fame project. "We continue to consult regularly with trade commissioners in Boston, as well as in New York and other cities, to gather local market intelligence and identify potential clients," says Shaw. The company has also taken advantage of the services provided by Export Development Canada.
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Natural Health from the Sea
Ocean Nutrition Canada, Dartmouth,
Nova Scotia
Launched in 1997, Ocean Nutrition Canada (ONC) was one of the first biotech firms to recognize the commercial potential of fisheries byproducts that have therapeutic value. This insight has allowed the Dartmouth-based company to compete in the global marketplace. In the process, it has become North America's largest producer of long-chain Omega-3 fatty acids from fish oil and a global leader in marine-based nutraceuticals. ONC's vertical integration strategy begins with a reliable and sustainable source of quality raw materials through its parent company, Clearwater Fine Foods.
More than 75 percent of ONC's production is exported to major dietary supplement and functional food manufacturers throughout North America, Europe and Asia. "We are looking forward to launching new products later this year in the United States, Australia and China, all using ONC's patented Omega-3 microencapsulation technology," says Robert Orr, ONC's President and CEO.
ONC operates North America's largest privately-owned marine research facility, as well as a microencapsulation pilot plant and a 6,500 square-metres Omega-3 refining, concentrating and packaging facility. Advanced processing technology and strict laboratory measures ensure the removal of any contaminants and heavy metals such as PCBs or mercury.
Honoured as one of Canada's leading innovative companies by Industry Canada and the National Research Council, ONC has developed three novel, patented compounds and has six more patents pending. The firm has a staff of approximately 250 people, including a research and development team of 42.
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Giant Egg Saves Lives
Ovatek Inc., Bas-Caraquet,
New Brunswick
Technology developed by a small New Brunswick company has played a critical role in a number of high-seas rescues. An egg-shaped, fibreglass life raft manufactured by Ovatek Inc. in Bas-Caraquet was recently credited with saving the crew of the Caboteur, a shrimp vessel which sank in frigid waters in Quebec. In another high-profile mishap in 1999, the crew of the Eve-N-Clare were able to stay afloat until they were rescued after their fishing boat went down off the coast of Cape Breton.
Ovatek has made a name for itself as the world's only producer of self-righting, rigid life rafts which require no maintenance. In heavy seas, when life raft launching is risky, Ovatek's craft can be used as a safe haven while still onboard the vessel. If the boat sinks, a quick release lever enables the unit, with the crew inside, to float free.
With 20 percent of its business generated by exports—primarily to the United States but also to Latin America—Ovatek is now setting its sights on the other side of the Atlantic. "We hope to be established in Europe next year," says John Ball, Ovatek's General Manager. "The first step is obtaining European Union approval, which we are currently working on with help from the Canadian Embassy in Norway."
Founded in 1995, Ovatek spent the first five years perfecting its designs, which are approved by the Canadian and U.S. Coast Guards. The company recently sold its 600th life raft.
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Resounding International Success
SABIAN, Meductic,
New Brunswick
The hamlet of Meductic, New Brunswick, is home to one of the world's leading manufacturers of cymbals. Founded in 1981, SABIAN is the only major company in the world producing cymbals hand-hammered in the ancient Turkish style. Innovative techniques produce instruments used by marching bands around the world, musicians such as Phil Collins and Jeff Watts and percussionists in major orchestras, including the New York Philharmonic and the Orchestre symphonique de Montréal .
New Brunswick's rich musical and cultural traditions have contributed to making SABIAN what it is today: the world's fastest-growing cymbal manufacturer, whose products can be found in more than 120 countries. Approximately 90 percent of the company's sales are generated by exports, primarily to the United States, France, Germany, Spain and Italy. Other major markets are Venezuela, Mexico, Ecuador and other Latin American countries. Most recently, SABIAN has added a distributor in South Korea.
With a staff of about 100, SABIAN is a major contributor to the local economy. The company is now completing a major expansion to its facility in Meductic to keep up with its flourishing international business and to facilitate shipping overseas. "Since only 10 percent of our volume is in Canada, exports are crucial to our business," says Robert Zildjian, President of SABIAN. "This latest expansion will help us to further expand our international business."
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Checking the Moorings
Welaptega Marine Ltd., Dartmouth,
Nova Scotia
Welaptega Marine Ltd. occupies a very defined niche in the offshore petroleum industry. The Dartmouth-based company is the world leader in underwater mooring inspection solutions for floating production facilities.
Welaptega's products include tools for measuring chain deterioration and detecting loose chain studs, as well as deepwater 3D video inspection systems. "Verification of mooring integrity is critical to the long-term operational viability of floating production facilities," explains Richard Khan, Welaptega's Director of Marketing. "Because the moorings remain in place underwater during inspection, there is no need to raise them. This process reduces operating costs for oil companies and avoids an interruption in production—a scenario they all want to avoid."
Clients in the United Kingdom, Norway, Indonesia, Australia and New Zealand account for more than 95 percent of Welaptega's business. The company is currently cultivating new markets in Latin America, where Canada's trade commissioners are lending a hand. "In particular, staff at the Canadian Consulate General in Rio de Janeiro have been instrumental in identifying potential Brazilian clients and partners and facilitating meetings with them," adds Khan.
Since its founding in 1992, Welaptega, winner of a 2004 Nova Scotia Export Achievement Award, has established a worldwide network of partners and agents.
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