Expansion plans for Tube-Fab Ltd. were announced today by representatives from the Government of Canada, the Government of Prince Edward Island, and Tube-Fab Ltd. The $9.4 million project will include an expansion of Tube-Fab's West Royalty location and a new facility in Slemon Park, resulting in economic benefits in both areas.
The Honourable Pat Binns, Premier of Prince Edward Island; George Proud, Member of Parliament for Hillsborough, on behalf of the Government of Canada; along with Kirk Foley, Chairman and CEO of Tube-Fab Ltd., made the announcement from Tube-Fab's location in the West Royalty Industrial Park.
"This expansion project will provide jobs in a high technology industry and will help boost the local economies of Charlottetown and Summerside," said Premier Binns. "Through this federal - provincial initiative, Tube-Fab Ltd. will grow by 300 percent over the next two years."
Tube-Fab Ltd. manufactures precision machined products for the aerospace and medical industries. One of its major contracts involves supplying a hospital bed manufacturer with hydraulic actuators and machined components of aerospace quality for the production of advanced medical beds.
"I am pleased that the Government of Canada is helping this Island company expand into new international markets, while creating 80 new jobs in two areas of the province," said Mr. Proud. "Focusing on growth means increased long-term job opportunities for Prince Edward Island residents."
The Tube-Fab project has been identified as a priority for economic development. It will create 40 new jobs at the company's current location in the West Royalty Industrial Park, and an additional 40 jobs will be created in Slemon Park where Tube-Fab Ltd. is establishing a second Island location.
"The establishment of Tube-Fab operations in Slemon Park is a valuable addition to the Island aerospace industry," says Joe McGuire, Member of Parliament for Egmont. "The industry is already moving toward being a leading employer on PEI, and Tube-Fab's presence in Slemon Park will help attract other companies and increased business."
Tube-Fab Ltd. is being awarded two major contracts from Hill-Rom Company Inc., the largest North American manufacturer of advanced-care hospital beds. The contracts, valued at over $15 million per year for the next five years, have set the stage for the expansion of Tube-Fab Ltd. by initiating rapid sales and employment growth for the company.
"This is further evidence that the PEI aerospace and related industries can compete with a highly competitive and global market," says the Honourable Don MacKinnon, Minister of Development. "This expansion also speaks highly of Tube-Fab's commitment to the design and manufacturing of quality products."
Kirk Foley, Chairman and CEO of Tube-Fab Ltd., is very pleased with the new expansion plans. "This project is evidence of the excellent work our existing staff have produced here for years," says Foley. "When we looked at this large undertaking, Prince Edward Island's quality workforce was a major consideration and made PEI the obvious choice for Tube-Fab's expansion."
This expansion will see Tube-Fab Ltd. expand its current location in the West Royalty Industrial Park by 7,000 square feet to accommodate additional machining equipment required to produce the new components. In Slemon Park, a 20,000 square foot building will be renovated to house the product development, assembly, testing and warehousing operations.
The Government of Canada is providing over $1.7 million in assistance to this project through Human Resources Development Canada (HRDC) and the Atlantic Canada Opportunities Agency (ACOA). ACOA will provide Tube-Fab Ltd. with an $893,000 loan through its Business Development Program, and HRDC provided $495,000 through the Transitional Jobs Fund. Up to $380,000 is being funded through the Canada/PEI Labour Market Development Agreement, which is co-managed by HRDC and the PEI Department of Development. The Government of Prince Edward Island is also providing over $1.3 million through Enterprise PEI in the form of a loan and non-repayable contributions. An additional $500,000 will be invested by the Slemon Park Development Corporation, and Tube-Fab Ltd. will contribute over $5.8 million toward the expansion.
This project supports the Government of Canada's Jobs Strategy. The Jobs Strategy is based on strengthening economic fundamentals and establishing a favourable climate for job creation by making strategic investments in areas where the government can make a difference.
For more information, contact Kandace Ling, Labour Market Development Agreement, (902) 368-6574.