ST. JOHN'S, Canada, July 16 -- The government of Canada released the following news on behalf of Export Development Canada:
Export Development Canada (EDC) today announced that Major's Logging, a mechanical wood harvesting company based in Newfoundland, used its Export Guarantee product to make sure they could finance their expansion that was required to deliver on a new contract with Muskrat Falls.
Managing company Emera awarded the contract of mechanical wood harvesting to Major's Logging in order to clear the route for The Maritime Link hydroelectric transmission pipeline in Newfoundland and Labrador.
"EDC products really allowed us to comfortably expand our business and take on this new project" said Darcy Major, President of Major's Logging. "It's been wonderful to work in our back yard on such a historic project."
The Maritime Link, part of a 1,100 km electrical transmission pipeline, is just a small piece of the larger Muskrat Falls project. Once completed, the Maritime Link will connect the island of Newfoundland to the North American electrical grid for the first time.
"EDC wants to match world class Canadian small businesses, with major projects with large supply chain needs. We provide the products and introductions to make new deals happen," said David Surrette, EDC Regional Vice-President for Atlantic Canada. "By supporting suppliers like Major's Logging to the Muskrat Falls project, EDC wants to play an active role in helping Atlantic-based Canadian companies grow their business."
EDC is Canada's leading financier and insurer of Canadian companies that sell into foreign markets. EDC recently determined that the level of production destined for international export markets in the Muskrat Falls project meets EDC's exporting criteria, opening up its financial services to all of the Canadian suppliers of Muskrat Falls.
Suppliers to projects like Muskrat Falls can be required to post bid and performance bonds which, for small companies, can sometimes take up too much working capital. EDC will work with businesses and their banks to provide letters of credit or bonding where necessary, helping to free up working capital and allowing SME's to bid on projects which would be otherwise inaccessible.
EDC's services can also help Canadian companies finance their foreign investments, such as setting up a foreign subsidiary.
"This is just the beginning for Major's Logging, and a great opportunity for other small-and-medium sized businesses in the area," said Surrette. "Muskrat Falls, and the projects within it, provide for a unique showcase of Canadian expertise in the offshore energy sector."
EDC has offices in St. John's, Moncton and Halifax to serve the needs of small businesses in Atlantic Canada. EDC has 17 offices across Canada to answer any questions that Canadian companies may have about how to grow their international sales, or how to make that first export sale.
More than 413 Canadian companies in Atlantic Canada used EDC products and services in 2013 to undertake more than CAD 3 billion in export trade.
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