Province Helps Secunda Employ More Nova Scotians

ECONOMIC DEVELOPMENT--Province Helps Secunda Employ More Nova Scotians

A new loan guarantee provided by Nova Scotia Economic Development is helping a Dartmouth company capitalize on opportunities in the offshore.

With the loan guarantee, Secunda Marine Services was able to retrofit and convert the offshore supply vessel the M.V. Panuke Sea.

Secunda Marine Services converted two vessels when a similar loan guarantee was provided by the province in 1999. Long-term financing for the vessels was subsequently secured by Secunda and the original loan guarantee was returned.

Overall, the Panuke project will create up to 1,300 person-years of work from the construction and subsequent operation of the vessel.

The loan guarantee will not exceed $23.5 million and is for a period of up to eight years. Secunda was required to have 12.5 per cent equity in any vessel supported by the guarantee.

"This is exactly the kind of support our economic growth strategy envisions," said Economic Development Minister Cecil Clarke. "We're supporting innovation, the offshore and our potential for export."

"Our success has been built on our ability to seize opportunities, create value and provide customer service," said Fred Smithers, president and chief executive officer of Secunda Marine. "The assistance the province is providing helps us to invest in critical infrastructure and continue to put Nova Scotians to work."

The company has used its expertise to retrofit many vessels for specialized marine duties. The vessels are working throughout the world, with a major concentration on Canada's East Coast.

Secunda employs more than 400 Nova Scotians with an annual payroll of $24 million, generating about $3 million in tax revenue for the province.