Sept. 19, 2008
EDMUNDSTON (CNB) - The provincial government has helped IPL Inc. maintain 185 jobs by assisting in securing a forgivable loan to allow the company to acquire new equipment and make productivity improvements. Premier Shawn Graham made the announcement at IPL's Edmundston operation on Thursday, Sept. 18.
"This announcement will help ensure that the company has the financial resources necessary to invest in its operations and be more successful in Edmundston," said Graham. "Today we are helping an important Edmundston manufacturer that has created sustainable employment for nearly 200 people in the region. Our support for this company is in keeping with our government's plan to diversify and transform northern New Brunswick's economy. This type of strategic partnership is an example of how we are helping our companies be more innovative and be more competitive, while furthering our goal of self-sufficiency by 2026."
Graham was accompanied by Serge Bragdon, president of IPL Inc.; and Edmundston Mayor Jacques P. Martin.
The $750,000 forgivable loan will allow the company to buy new, efficient equipment, and to undertake productivity improvements that will reduce operating costs and maintain employment for Edmundston-area residents working at the facility.
"Like many other sectors, the plastics industry is going through some hard times," said Bragdon. "Being competitive is no longer a matter of being efficient internally. We are increasingly dependent on external factors. Rising transportation costs related to the distance of our markets and the cost of electricity to operate our Edmundston plant make things more and more difficult for us in the face of American competition. Year after year, IPL has invested between $3 and $6 million in our New Brunswick plant. We are currently re-evaluating our investment strategy, and this greatly appreciated assistance can only encourage us to continue giving our Edmundston plant the means to be able to remain profitable and continue to progress in an extremely competitive market."
The Government of New Brunswick has been fulfilling its commitment to assist New Brunswick industry, as companies such as Flakeboard, Sunny Corner Enterprises, LuminUltra Technologies, and Ganong Brothers Ltd. invest in their operations.
"This announcement is part of our government's effort to be a leader in economic development," said Graham. "We are committed to supporting our New Brunswick companies, and it is encouraging to see IPL invest in its operations. By supporting this sector of the economy we are helping it to modernize, to be innovative, and to upgrade technologies to compete better in the global marketplace."
IPL is one of North America's leading producers of moulded plastic products through injection and extrusion for different industrial manufacturing sectors, making and marketing over 400 items for packaging and materials handling. It also provides highly technical value-added custom moulding services for the automotive and transport industries, as well as for various industrial uses.
IPL employs more than 1,100 people in its four plants located in Saint-Damien, Saint-Lazare and Lawrenceville (Que.), and in Edmundston.
MEDIA CONTACTS: Ryan Donaghy, communications, Business New Brunswick, 506-453-2694; Serge Bragdon, IPL Inc., 800-463-7083.