Co-op Atlantic Expands in Sydney

ECONOMIC DEVELOPMENT-Co-op Atlantic Expands in Sydney

Co-op Atlantic is adding a meat processing and distribution centre and expanding its state-of-the-art frozen food facility in Sydney. The three-phase project will create 60 full-time jobs.

The first two expansion phases for the 40,000-square-foot facility will begin by mid-October. They are expected to be completed by the spring of 2002.

The first phase of the project will increase the freezer capacity at the Sydney operation and allow Co-op Atlantic to improve its distribution for the growing frozen food market. During the second phase, a meat aging, curing and packaging facility will be constructed. In the third phase, the facility will add a state- of-the-art meat processing facility to service all of Atlantic Canada.

"The expansion is necessary to keep pace with growing demand on Cape Breton Island and throughout Atlantic Canada. But more importantly, this is a good news story for Sydney," said Eric Claus, chief executive officer for Co-op Atlantic. "We are continuing to secure and create jobs in this community. I believe it underscores our philosophy that you keep communities strong by continuing to support local ownership."

Co-op Atlantic, Atlantic Canada's largest co-operative wholesaler, is investing $3.7 million in the first two phases of the project. The province of Nova Scotia is providing a loan of an equal amount conditional upon the creation of 24 jobs in the first two phases. The Cape Breton Growth Fund will provide a contribution of $800,000 for all three phases, conditional upon the creation and maintenance of 60 jobs, which includes the 24.

"The province's support helps Co-op Atlantic make a major investment in Sydney operations," said Cape Breton North MLA Cecil Clarke on behalf of Economic Development Minister Gordon Balser. "Co-op Atlantic is making a significant commitment to Cape Breton. It's investing in the local area, creating good jobs for residents and generating profits that go back into the community."

Mark Eyking, for Sydney-Victoria, speaking on behalf of Robert Thibault, Minister of State for the Atlantic Canada Opportunities Agency and Enterprise Cape Breton Corporation, reiterated this point.

"By working in partnership with Co-op Atlantic and the province of Nova Scotia, the government of Canada is helping to make this major project a reality. The government of Canada, through the Cape Breton Growth Fund, is pleased to help Co-op Atlantic expand and, as a result of this expansion, establish these employment opportunities on Cape Breton Island."

Co-operatives are owned by community members. Co-op Atlantic is a diverse and innovative business serving 136 member co-ops throughout Atlantic Canada with consolidated sales in excess of $478 million in 2000. This co-operative is a recognized business leader in the area of consumer products agriculture, and petroleum, as well as real estate and housing development. Collectively, Co-op Atlantic and its member co-ops employ more than 5,000 Atlantic Canadians and serve more than 226,000 member- families.

Funding for this project was provided for in the federal budget of February 2000 and is built into the existing financial framework.

The Cape Breton Growth Fund is responsible for the administration of the economic adjustment fund established by the governments of Canada and Nova Scotia to assist the Cape Breton Island economy adjust to the closure of the coal industry.