Canada Economic Development

Canada Economic Development

March 16, 2005 16:02 ET

Job Creation and Consolidation: Government of Canada Awards $5 Million to G.D.S. NOV-I-BOIS and TechnoCentre Eolien to Revitalize the Gaspe Economy


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANADA ECONOMIC DEVELOPMENT

MARCH 16, 2005 - 16:02 ET

Job Creation and Consolidation: Government of Canada
Awards $5 Million to G.D.S. NOV-I-BOIS and
TechnoCentre Eolien to Revitalize the Gaspe Economy

GASPE, QUEBEC--(CCNMatthews - March 16, 2005) - The Honourable Jacques
Saada, Minister of Canada Economic Development and Minister responsible
for the Francophonie, announced during a visit to the region today that
the Government of Canada will grant financial assistance to two Gaspe
enterprises to help revitalize the region's economy.

G.D.S. NOV-I-BOIS Inc. will receive a $2 million repayable contribution
to establish a secondary and tertiary wood transformation plant in
Gaspe, while TechnoCentre eolien Gaspesie - les Iles will be awarded a
$3 million non-repayable contribution to re-activate its operations and
establish an integrated R & D and technology transfer centre. Together,
these projects will create 67 new jobs and consolidate numerous others
in the Gaspe region.

"These two projects and the spinoffs they will generate are excellent
news for the workers and economic stakeholders in the region who have
been striving for many years now to revitalize and diversify their local
economy. Moreover, the wind industry and secondary and tertiary wood
transformation sector are gaining a growing share of their respective
markets and showing tremendous potential for the future," stated
Minister Saada.

The G.D.S. NOV-I-BOIS Inc. project, which will necessitate total
investments estimated at nearly $12 million, involves the construction
of a value-added wood processing plant in Gaspe's industrial port
district. This project is expected to create 60 new permanent jobs and
consolidate the existing jobs at the G.D.S. group's sawmills in
Grande-Riviere and Grande-Vallee. The funding is awarded under Canada
Economic Development's Support Program for the Economy of the Gaspe and
Magdalen Islands, which aims to encourage SMEs to innovate, increase
their productivity and promote the commercialization of value-added
products arising from R & D. The program is also in line with Canada's
forestry policy, which seeks to finance projects relating to innovative
technology and the development of resource regions.

The TechnoCentre eolien Gaspesie - les Iles project, whose total
investments stand at $8 million, will enable the Murdochville-based
TechnoCentre to pursue its operations, particularly those related to the
development of regional know-how, and establish an integrated research
and development and technology transfer centre, which will permit the
creation of seven new jobs. The $3 million contribution is awarded under
Canada Economic Development's Regional Strategic Initiatives (RSI)
program for the Gaspe-Magdalen Islands region.

"This new integrated R & D - technology transfer centre will be a key
element in Quebec's wind sector. The establishment of a network of
excellence aimed at developing know-how in wind energy, especially in
nordic conditions, will make it possible to transfer this expertise to
the Quebec industry and thereby foster the emergence of numerous
projects in the field," added Minister Saada.

Minister Saada also took the opportunity during his visit to the region
to announce a contribution of up to $36.5 million over 10 years from
Natural Resources Canada to the firm 3Ci and its partners Nortland Power
Inc. and Creststreet Power Holding in the form of a 1.0 cent financial
incentive that can be claimed on every kilowatt-hour of net production.
This support is awarded under the Government of Canada's Wind Power
Production Incentive (WPPI), an initiative developed to provide
financial support for the installation of 1,000 megawatts of new wind
energy capacity.(1)

Canada Economic Development's mandate is to promote the economic
development of the regions of Quebec. Primarily through financial
assistance programs, the Agency elicits and supports the implementation
of economic development projects. The two priorities the Agency has set
itself are to foster innovation and the knowledge economy in each region
of Quebec, and to help communities that are having difficulty adjusting
to the new economy. In this way, the Agency contributes to the
attainment of the Government of Canada's objective of building the 21st
Century economy.

Funding for this initiative was provided for in the February 2005
federal budget.

Canada Economic Development is online at www.dec-ced.gc.ca. Subscribe to
the Agency's press releases at
www.dec-ced.gc.ca/asp/SitePersonnalise/acces_personnalise.asp?LANG=EN to
keep up with the latest news.

(1)This contribution is the subject of a news release issued by Natural
Resources Canada and available on line at www.nrcan.gc.ca

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Canada Economic Development
    Guylaine Beaudoin
    Communications
    (418) 580-8215 (cellular) ou (514) 283-0368
    or
    Canada Economic Development
    Office of the Honourable Jacques Saada
    Daniel Dezainde, Press Secretary
    (514) 496-1282