News Release Archive

ECONOMIC RENEWAL--MACTARA EXPANSION APPLAUDED
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The Nova Scotia government is helping a traditional resource
company compete in major markets by using high technology, said
Natural Resources Minister Eleanor Norrie, on behalf of Economic
Renewal Agency minister Robbie Harrison, at the official
expansion opening of MacTara Ltd., the province's largest
sawmill.

No other sawmill in Eastern Canada is using the
state-of-the-art technology that MacTara is implementing at its
Upper Musquodoboit operation, including 45 computers, and
controlled sawing operations.

"With improved efficiencies and new technology, MacTara is adding
value to a pulp product by retrieving pulpwood from the forest
floor and creating a saleable product with new markets," Mrs.
Norrie said.

Strong demand from North American markets for kiln-dried softwood
lumber sparked the $26 million expansion at MacTara. Over a year
in the making, the expansion plan included the purchase of 41,500
acres of private timberland in Hants County, plus new equipment
to make MacTara the most automated high-volume sawmill in the
province.

The Economic Renewal Agency assisted MacTara's expansion with a
$3.9 million loan guarantee. "MacTara has proven itself to be a
major contributor to the Musquodoboit Valley economy directly
employing and contracting 400 people," said Mrs. Norrie. MacTara
added 100 new direct and spin-off jobs as a result of their
expansion.

"MacTara is safely using innovative and modern techniques within
a traditional resource sector," said MacTara Ltd. owner Hugh
Erskine.

MacTara exports throughout the Maritimes, Quebec, Ontario and
Manitoba, as well as 24 U.S. states. "Increasing exports at
MacTara means increasing job opportunities for Nova Scotians,
increased revenue for small woodlot owners and steady sales for
Nova Scotia suppliers," said Mrs. Norrie. "MacTara is creating
vital jobs in rural Nova Scotia while contributing millions of
dollars of economic activity into the regional economy."

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Contact: Linda Laffin  902-424-6810

trp                      June 27, 1996 - 12:20 p.m.