Manufacturing
While the Province's manufacturing sector, in terms of output and
employment, is dominated by fish, paper and petroleum products, the industry encompasses
the manufacture of a wide variety of other products including technology-based goods,
footwear, furniture, marine vessels and oil rigs. The emergence of the oil and gas
industry has significantly boosted the manufacturing sector in the Province--the Bull Arm
industrial site, the St. John's Dockyard and the Marystown Shipyard are all benefiting
from increased activity in the oil industry.
In the first nine months of 1998, the value of manufacturing shipments
totaled $1.3 billion, an increase of 8.6% compared to the same period last year. Higher
fish product shipments were the primary reason for the growth in value. Increases in many
other products including wood, fabricated metal, non-metallic mineral, and chemical
products also contributed to the gain. The volume and value of newsprint shipments
declined as a result of the strike at Abitibi-Consolidated's mills at Grand Falls and
Stephenville. Employment in the manufacturing industry in the first nine months was
17,800, relatively unchanged from that recorded last year.
Fuel production at North Atlantic Refining is currently about 105,000
barrels per day. The refinery had two scheduled maintenance shutdowns this year--one in
April and the other in October/November. These scheduled shutdowns help ensure the safety
of refinery operations and increase the efficiency of various refinery equipment and
processing units. The November maintenance included the installation of a new reaction
furnace to recover more sulphur from processed crude. The refinery returned to normal
production during the first week of December.
The Economic Development and Growth Enterprises (EDGE) program offers tax
incentives and the lease of unserviced crown land for a nominal fee to new or expanding
business. Since its inception in 1995, a total of 64 companies, operating in various
sectors, have been granted EDGE status. Of this total, 39 manufacturing and processing
companies have been designated, investing $17.4 million and creating 275 jobs.
Company Profile
NEWDOCK, St. John's Dockyard Ltd.
 The past twelve months were successful
ones for the St. John's Dockyard (SJD) for both business divisions. Privatized last year,
the ship repair division was successful in securing approximately 60 contracts, providing
employment for up to 284 people at peak periods. The offshore services division entered
into an $8.5 million agreement with the Terra Nova Alliance and Kongsberg Offshore (KOS)
of Norway, to construct Hinge Over Subsea Templates (HOST) systems for the Terra Nova
project. Grenland Offshore (KOS's fabrication partner), is presently constructing four of
the seven HOST systems required by Terra Nova. Employees from SJD have been in Norway
since September 1998, acquiring the skills and expertise necessary to build the remaining
three systems in St. John's starting in the Spring 1999.
Aside from the obvious immediate economic benefits, the goal of this
agreement is to establish a local capability to fabricate HOST systems within the
Province. Upon conclusion of this agreement, SJD will be the only North American
fabricator with the proven skills needed to manufacture the HOST systems.
With a strong footing in offshore fabrication combined with a continued
upgrading of the ship repair facility, the St. John's Dockyard expects 1999 to be another
successful year. |
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