Northern Development Rebate Spurs New Job Creation by Del-Tech Manufacturing

(Northern Development) has approved rebates which supports over $23.7 million in capital investment and training by expanding manufacturing businesses that are creating up to 306 new jobs in central and northern BC over the next two years.

Northern Development is pleased to announce that Del-Tech Manufacturing Inc., a member of The BID Group, has been approved under Northern Development’s Capital Investment and Training Rebate Program.


Keith Spencer and Ben Crooks of Del-Tech Manufacturing are joined by a number of their employees as well as Bruce Sutherland, Chair of Northern Development, Mayor Dan Rogers, and Tim Mcewan, CEO of Initiatives Prince George, for a media event in Del-Tech’s Prince George facility to announce anticipated job creation, workforce training, and investment in northern British Columbia.

Businesses can apply for a rebate of up to five per cent of capital, as well as direct training costs to a maximum of $10,000 per full-time position created. The goal of the program is to serve as a catalyst to create over 3,000 new jobs in northern and central BC by 2012. Towards this end, Northern Development has dedicated up to $30 million in funding that will ensure a highly trained workforce and promote a positive local environment for capital investment.

“There is no other program for business like this in Canada that is so responsive and streamlined. The forty communities within the Northern Development region are absolutely welcoming businesses by providing a great investment climate through their commitment and support of this program.” said Northern Development Chair Bruce Sutherland.

Del-Tech Manufacturing Ltd. and BID Group partner, Nechako Mechanical Ltd., will be developing two new products to tap into the growing bioenergy market. The goal is to manufacture wood pellet-fired boiler systems that effectively compete with low emission European models.

“The Capital Investment and Training Rebate will support our company to engineer and manufacture pellet-fired boilers capable of competing with European systems in emission levels, while still providing optimal heat production per unit of fuel. There are components that we purchase out of the U.S. or Europe currently. We’re looking to manufacture all the components on site in Prince George,” BID Group Director of Operations Keith Spencer said. “The funding gives us the ability to go ahead with the work.”

In addition, the rebate funding has allowed Nechako Mechanical to proceed with an expansion to begin manufacturing heaters for hog fuel-burning thermal oil energy systems. Thermal oil energy systems are used primarily in drying kilns during wood product manufacturing. Currently, the BID Group cannot manufacture the heaters, which are a key component of the thermal oil systems.

 “Number one, we’re going to be able to commit to a better delivery time to the customer. We’ll have more control on the supply,” Spencer said. “At the end of the day, it’ll reduce the cost and improve the service to the customer. It’s a win-win.” The two projects are expected to create 10 to 12 new jobs over the next two years and will require additional training for welders working for the companies.

City of Prince George Mayor Dan Rogers applauds the capital investment and workforce expansion announced today by Del-Tech. “Our city is well positioned to grow business with efficient approval processes and significantly lower development cost charges compared to other similar sized cities or metro Vancouver. We appreciate that the Northern BC Business Advantage programs offered by the Northern Development Initiative Trust allow our community to attract business investment and acknowledge how important manufacturing jobs are for this city.”

“The Northern Development rebate announced today will help ensure that our northern economy remains strong, despite current global economic conditions,” said Deputy Premier and Prince George-Mount Robson MLA Shirley Bond. “By creating the regional development trusts, government has helped strengthen and diversify rural and northern economies. I would like to thank Del-Tech Manufacturing Inc. for investing in the north and the Northern Development Initiative Trust for their continuing management of the fund.”

Conifex Inc., a Fort St. James company that previously acquired the Pope & Talbot sawmill assets from the receivers was the first business to utilize Northern Development’s Capital Investment and Training Rebate Program. Conifex is planning to create approximately 260 jobs in Fort St. James in 2009.

-30-

Media Contacts:

Janine North
Chief Executive Officer
Northern Development Initiative Trust
Tel:  250-561-2525
info@northerndevelopment.bc.ca

Keith Spencer
Director of Operations
Del-Tech Manufacturing Inc.
Tel: 250-564-3585
keith@deltech.ca

About Northern Development

Northern Development Initiative Trust is an independent regional economic development corporation focused on stimulating economic growth and job creation in central and northern British Columbia. Over $42 million in funding has been committed to 255 projects with a total project value of over $252 million.

For information on funding programs and economic development in central and northern British Columbia, visit: