Province Invests $3 Million in Elmsdale Lumber

A Nova Scotia company will be able to modernize its manufacturing and production operations and remain competitive thanks to an investment by the province.

Economic and Rural Development Minister Percy Paris announced today, June 11, that the province is providing a $3-million repayable loan to through the Industrial Expansion Fund to help Elmsdale Lumber Company purchase new technology and equipment.

"The province is making the right decisions for Nova Scotia families by investing in jobs and the economy," said Mr. Paris. "This assistance will help Elmsdale Lumber compete in a market in which productivity improvements are necessary for sustainable operations and ongoing employment. With greater efficiencies, the company may attain new contracts leading to new opportunities."

Over the past five years, production at the mill has increased by almost 50 per cent and it has had to expand capacity to meet demand. It must expand and modernize its manufacturing and production operations to remain competitive. The new equipment will allow the mill to fill more orders by sorting and stacking lumber to 99 different specifications.

"Now that the economy is turning around and things are starting to percolate again, the timing is right for us to make this investment," said Robin Wilber, president and owner of Elmsdale Lumber. "The new equipment will allow us to modernize our current operations and build new technology into our processes going forward, which will ensure our stability for many years to come."

The mill, one of the largest in the province, is an integral part of the lumber industry in Nova Scotia. It supports sustainable forestry practices and produces 25 million board feet of lumber annually, about 90 per cent of which is for use in local markets.

Elmsdale Lumber employs more than 50 people and has an annual payroll, including benefits, of $2.2 million. It also purchases more than $8 million of goods and services from local suppliers each year. The $3-million loan is fully repayable to the province with interest.

Administered by the Department of Economic and Rural Development, the Industrial Expansion Fund is one of the tools government uses to help industries with productivity and innovation. Investments made through the fund help protect jobs and support businesses in becoming more competitive and sustainable. Through the fund, the department provides financial support, such as loans and guarantees, when it is not available through traditional sources. More information on the fund is available on the Economic and Rural Development website at www.gov.ns.ca/econ .