News Release Archive

ECONOMIC DEVELOPMENT/TOURISM--MM Industra to Develop Pictou Yard
The Pictou Shipyard will soon have a new owner. MM Industra will
position the yard for continued offshore work, fabrication and
some ship repair, creating up to 200 jobs.

Manning MacDonald, Minister of Economic Development and Tourism,
and Besim Halef, president of MM Industra Ltd., announced an
agreement in principle today in Pictou. 

"This much anticipated news is great for shipyard workers, the
community and for the region," said Mr. MacDonald. "The new
company is negotiating fabrication project contracts worldwide
and that means solid job prospects at the yard."

Both sides have agreed to a purchase price of $2.35 million,
based on $750,000 for the existing facility (excluding the
federal government wharf area, marine railway, common user
facility and floating dry dock) and an additional $1.6 million in
financing for improvements to bring the yard up to standard.

The $1.6 million will be used to upgrade the fabrication hall,
marine railway and electrical systems. MM Industra will complete
these upgrades on behalf of the province.

The company will also make a $1-million investment in equipment
and to bring the yard to production. The province will forgive $1
million of the purchase price, based on MM Industra's investment.

The company will also have the ability to receive additional
credits based on full-time jobs created. MM Industra, owned by
American Eco Ltd. of Houston, will be responsible for all future
operating and capital costs associated with the shipyard.

"We'll be endeavouring to create steady employment for up to 200
people in this region," said Mr. Halef. "We're looking forward to
working with the existing union and to being a good corporate
citizen for the community."

Added Mr. MacDonald: "It's great to deal with a company that has
confidence in the future of the Pictou Shipyard. Together, we're
creating much-needed jobs in rural Nova Scotia and securing a
bright future for the community."


Contact: Steve Fairbairn
         Economic Development and Tourism

ngr                  Dec. 30, 1997                 11:30 a.m.