Ganong plans $10M expansion, adds 40 jobs
Ganong Brothers Ltd. is expanding its St. Stephen-based chocolate factory by 10 per cent through a $10-million expansion, financed partly by the federal and provincial governments.
Doug Ettinger, the company's president and chief executive officer, announced on Friday it had secured a new long-term contract with an international customer that is allowing for the expansion.
"I am proud to announce a $10 million expansion that will see us grow our plant size by 10 per cent and invest in new, world-class technology that will allow us to compete efficiently in a rapidly changing global marketplace," Ettinger said in a statement.
The company will add a new robotic line that will allow it to bump up its sales volume by as much as 25 per cent in the first year.
Ettinger said the investment will help "reverse the exodus of quality manufacturing jobs from our region and our country."
Ettinger said he was so confident in the project he was putting his own money into it, although it was clear financing was a problem.
The federal and provincial governments anted up repayable loans representing a total of $5 million.
Ettinger said the federal and provincial support helped make the expansion possible.
"Without this kind of support this project would not haver proceeded and many others in this region would not proceed without some form of assistance from government," said chairman David Ganong.
Ganong Brothers Ltd. has relied heavily on government help in recent years — both federal and provincial — and although neither Premier David Alward nor Deputy Premier Paul Robichaud could say how much the company already owes the province, both said another loan was still a good deal for taxpayers.
The company said its new expansion project will be operational by June 2012 and will allow it to hire as many as 40 new employees.
"Far too often over the last two decades we have all seen the headlines showing more manufacturing jobs leaving Canada for other countries," Ettinger said in a statement.
"Today, at least in the confectionary category, that trend stops as we create new quality manufacturing jobs in New Brunswick."
"This is a very positive day for Charlotte County, for St. Stephen and more importantly for New Brunswick," Premier David Alward said Friday.
Alward highlighted the jobs that will be created by the expansion but it was a little unclear who would fill them.
The company already employs dozens of foreign workers — including 30 Romanians — it said because of a shortage of locals able or willing to work.
Energy cost concerns
Along with the provincial government's financial commitment to the project, the Ganong president said the province has been helping the company in finding ways to lower its power prices.
"They certainly understand the importance of competitive energy costs in the manufacturing sector and the sheer fact we are standing here today is testament to the confidence we have in their ability to find a workable solution for all New Brunswickers," Ettinger said in a statement.
The manufacturing industry has long complained about the high cost of electricity in New Brunswick.
David Ganong led a committee in 2010 that endorsed the former Liberal government's attempt to sell NB Power to Hydro-Québec.
Earlier on Friday, Economic Development Minister Paul Robichaud announced the New Brunswick government had to pay $10.8 million to Norway's Umoe Solar even though the company never delivered on its promise to construct a solar plant in Miramichi.