© Star photo by Paul Hutchings
Deer Lake Mayor Dean Ball, left, along with Innovation, Business and Rural Development Minister Keith Hutchings get a tour of Goodfellow Inc. from employee Andy Ford on Wednesday.
DEER LAKE A pressure-treated wood facility in Deer Lake received $250,000 from the province.
The announcement was made by Innovation, Business and Rural Development Minister Keith Hutchings Wednesday. Goodfellow Inc. will use the extra funding to reduce turnaround time and potentially bring in more personnel over the next few months according to the minister.
The funding is made up of a $150,000 low interest loan and a grant of $100,000. It has been made available through the Business Attraction Fund, which supports large-scale strategic investments in business ventures and infrastructure for the purpose of attracting business to the province.
Hutchings said the loan guarantee is tied to security and assets.
‚ÄúFunding supported the establishment of a pressure treatment facility adjacent to the company‚Äôs existing distribution yard which treats local wood using modern technology,‚ÄĚ Hutchings said. ‚ÄúThis investment significantly reduces the turnaround time required to produce and distribute product.‚ÄĚ
He said the funding would also significantly decrease the company‚Äôs operating costs and add to its competitive edge.
The decision comes after another wood treatment company, Marwood of New Brunswick, pulled out of Deer Lake in favour of a location near Clarenville.
A Marwood representative said the decision had nothing to do with government funding, but was based on an available location on the east coast that already had wood cutting equipment in place.
Goodfellow has been operating in the province for over three decades, with locations in St. John‚Äôs as well as Deer Lake and across the country.
Company vice-president Dave Warren said the grant allows the company to produce value-added products on the island.