News Release

For Immediate Release
April 22, 2005

Improved Facilities at Mulgrave Machine Works Ltd.

Mulgrave, NS – Mulgrave Machine Works Ltd. will modernize its production facilities and acquire new equipment with assistance from the Government of Canada.

“Small business is the lifeblood of the Canadian economy,” says
Rodger Cuzner, MP for Cape Breton – Canso, on behalf of the Honourable Joseph McGuire, Minister for Enterprise Cape Breton Corporation (ECBC) and the Atlantic Canada Opportunities Agency (ACOA). “For the last 35 years Mulgrave Machine Works Limited has made a significant contribution to the Mulgrave business community. With this project, the owners are not only investing in the future of the company, they are investing in the community.”

Mulgrave Machine Works Ltd. is a custom metal fabricator. It provides design, fabrication and repair services to the offshore oil and gas, heavy industry, forestry, marine, and environmental sectors.

The project will involve consolidating the company’s fabrication, machining and administrative functions to the 34 England Avenue location in the Mulgrave Marine Industrial Park. This plant will undergo upgrades and new production equipment will be acquired that will allow the company to undertake more advanced fabrication projects.

The company will retain its existing site on Mill Street which will be converted to a coatings facility. This will allow the company to complete finishing work, some of which had to be sent off-site in the past due to plant constraints. The combined upgraded facilities will increase productivity, provide an enhanced work environment for employees and allow the company to pursue new markets.

“By consolidating our production facilities, we are providing a consistent “store front” image to customers,” says Sean Reid, President and General Manager of Mulgrave Machine Works Ltd. “This combined location will help us respond to the market demand for slow and fast work cycles that is common in the metal fabrication industry.”

The total cost of the project is $800,000. ECBC will provide a repayable contribution of $400,000 through ACOA’s Business Development Program. This project will create two full-time jobs and maintain 40.

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.

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FOR BROADCAST USE ONLY:

MUGRAVE MACHINE WORKS LTD. WILL MODERNIZE ITS PRODUCTION FACILITIES AND EQUIPMENT WITH ASSISTANCE FROM THE GOVERNMENT OF CANADA ANNOUNCED TODAY BY CAPE BRETON-CANSO MP RODGER CUZNER.

THE PROJECT WILL INVOLVE CONSOLIDATING THE COMPANY’S FABRICATION, MACHINING AND ADMINISTRATIVE FUNCTIONS TO THE ENGLAND AVENUE LOCATION IN MULGRAVE MARINE INDUSTRIAL PARK. THIS PLANT WILL UNDERGO UPGRADES AND NEW PRODUCTION EQUIPMENT WILL BE ACQUIRED THAT WILL ALLOW THE COMPANY TO UNDERTAKE MORE ADVANCED FABRICATION PROJECTS.

THIS PROJECT WILL CREATE TWO FULL-TIME JOBS AND MAINTAIN 40. THE TOTAL COST IS $800,000 AND ECBC WILL PROVIDE A REPAYABLE CONTRIBUTION OF $400,000 THROUGH ACOA’S BUSINESS DEVELOPMENT PROGRAM.

FOR ADDITIONAL INFORMATION CONTACT:

Valérie Poulin
Director of Communications
Office of the Honourable Joseph McGuire
Minister of Atlantic Canada Opportunities Agency
(613) 941-7241

Office of Rodger Cuzner, MP
Cape Breton-Canso
(902) 842-9763

Sean Reid
President and General Manager
Mulgrave Machine Works Ltd.
(902) 747-2157

D.A. Landry
Director of Communications, ECBC
(902) 564-3617