News Release Archive
ECONOMIC DEVELOPMENT/TOURISM--The Shaw Group Grows, Diversifies
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The Shaw Group Ltd. announced today it will build an
$18.5-million furniture manufacturing plant at Cornwallis Park in
the western Annapolis Valley.
The plant will create 125 permanent full-time jobs and many more
indirect jobs. The Shaw Group needs the plant to fulfill a
multi-year, multi-million dollar contract with international
Swedish retailer IKEA.
"We have been looking for a significant manufacturing opportunity
in the region," said Allan Shaw, chairman and chief executive
officer of The Shaw Group. "This project meets all our growth
criteria -- it takes a renewable resource, adds 100 per cent of
the value right here in the province, and then the product is
exported.
"This is a major expansion for the company, which significantly
increases our workforce and annual sales."
The furniture will be made from white pine harvested in western
Nova Scotia. It will be sawn at local mills, dried and then made
into panels and furniture at a new 100,000-square-foot
manufacturing plant. It will be shipped as ready-to-assemble
furniture to IKEA stores around the world.
In addition to the 125 new permanent full-time jobs, the
Cornwallis Park plant provides opportunity for significant growth
and increased employment in related businesses.
Federal government funding from the Atlantic Canada Opportunities
Agency (ACOA) was announced by Senator Al Graham, Leader of the
Government in the Senate, on behalf of Fred Mifflin, Secretary of
State for ACOA, at a news conference in Deep Brook.
"The renewed economic prosperity taking over Cornwallis is
something the entire community can celebrate," said Senator
Graham. "This site is becoming a significant industrial complex
and proved ideal for The Shaw Group's new business venture. The
federal government is pleased to be able to contribute toward the
125 manufacturing jobs that will result."
"Today's announcement reflects a belief in and commitment to the
people of this province," said Premier Russell MacLellan. "It
shows what can be accomplished when the private sector, the
government and the community work together to grow the economy.
We're creating much-needed jobs in rural Nova Scotia, adding
value to our resources and increasing exports. Clearly, this
partnership is a winner."
The Shaw Group is investing almost $6 million in the venture. In
addition to supplying the land and buildings, Cornwallis Park
Development Agency (CPDA)is contributing $2.2 million in
financing. The province is providing a $7.3 million loan and a $2
million contribution that will not be repaid if The Shaw Group
meets its employment targets. ACOA is providing $1 million in
financing.
"The establishment of the Shaw facility at Cornwallis Park is
indicative of the local community's success in creating one of
the best locations for business in Atlantic Canada," said Dr.
Paul LaFleche, chairman of CPDA.
"A significant contribution to this success has been the positive
business climate adopted by the Annapolis County Council."
The Shaw Group is a diverse manufacturing and real estate company
with annual sales of $50 million principally in Eastern Canada
and the northeastern United States. Clayton Developments, a
subsidiary of Shaw, is a developer of residential and commercial
real estate and has provided housing to more than 40,000 people
in the Halifax region.
IKEA is one of the world's largest retailers of ready-to-assemble
furniture with 1996 sales of $9 billion. IKEA's aggressive
expansion into the United States requires North American raw
materials and manufacturing capability to supplement the
company's European supply base.
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Contact: Michael Kontak
Director of New Ventures
The Shaw Group Ltd.
902-445-2000
Rick Alexander
Economic Development and Tourism
902-424-0927
902-471-3147 (cell)
E-mail: econ.alexanrj@gov.ns.ca
ngr Nov. 15, 1997 2:30 p.m.
