News Release

For immediate release
March 15, 2004

New Manufacturing Plant on the Northside to Create 90 Jobs

North Sydney, Nova Scotia - Approximately 90 manufacturing jobs will be created in North Sydney with help from the Cape Breton Growth Fund Corporation (CBGF), Enterprise Cape Breton Corporation (ECBC) and Nova Scotia Business Inc. (NSBI).

A new company, Cape Breton Castings Inc. (CBCI), is locating in the Northside Industrial Park. It will provide die casting and manufacturing facilities and services to the automotive industry. The state-of-the-art die casting plant will be fully operational by July 2004.

“This announcement bodes well for the growth of the manufacturing sector in Cape Breton. The Government of Canada is pleased to invest in a project that offers such significant returns in terms of job creation and skill development for local people,” said the Honourable Joseph McGuire, Minister responsible for ECBC and the CBGF. “Cape Breton Castings adds to the list of new developments that are helping to reshape the Cape Breton economy.”

“This project proves the Growth Fund is working and further demonstrates our commitment to growing the economy of Cape Breton Island,” said Nova Scotia Economic Development Minister, Ernie Fage. “Ninety new jobs is a significant boost to the economy and to the people of the Northside area.”

“This is a great project for Cape Breton. It builds on the existing strengths of our workforce and allows us to begin creating a cluster of high-end manufacturing facilities on the Northside,” said the Honourable Mark Eyking, Member of Parliament for Sydney-Victoria.

The new die casting plant will be in a modern 90,000 square foot building on six acres of land. The building will include a 75,000 square foot production facility, as well as an office area dedicated to quality assurance, design and engineering, sales and marketing and other support services. The plant will be fully computerized and networked and will have its own CAD/CAM capability and appropriate post-casting facilities.

The plant will produce aluminum die castings - - an important component in thousands of consumer, commercial and industrial products ranging from household appliances and car parts to airline components.

“Any time an industry cluster starts to develop in an area it can only mean good things for the future,” said Dr. Syed Naqvi of CBCI. “We are pleased to be able to establish a presence in Cape Breton. The workforce here is second to none and, as a testament to that, we are committed to continuously training our employees to ensure we remain competitive.”

The total capital cost of the new plant is approximately $13.3 million. The CBGF will provide the company with a loan of $3.1 million, and the Atlantic Canada Opportunities Agency (ACOA) will be providing a repayable contribution of $3million.

Nova Scotia Business Inc. (NSBI) will be providing a $2.1 million-year payroll rebate to Cape Breton Castings Inc. for the creation and maintaining of
90 positions during the term of the agreement.

The annual payroll is expected to exceed $4 million annually with an average salary of approximately $40,000.

The CBGF is a partnership between the Government of Canada and the Province of Nova Scotia and has a mandate to assist in the transition of the Cape Breton economy.

Enterprise Cape Breton Corporation offers programs in support of economic development initiatives and is responsible for delivering ACOA's programs on Cape Breton Island and in the Mulgrave area.


FOR ADDITIONAL INFORMATION CONTACT:

Stephen Heckbert
Office of the Honourable Joseph McGuire
Tel: (613) 948-7293

Dr. Syed Naqvi, President
Cape Breton Castings Inc.
Mississaugh, Ontario
905-362-1359

Joe Gillis
NSBI Communications
Tel: 902-424-6124

Crystal Aboud
Cape Breton Growth Fund Communications
Tel: 902-564-7331