Loan to sawmill will help make the chips fly for company

The province has made a financial commitment to the modernization of a Bonavista Bay sawmill.
The $2.25 million non-interest loan for the modernization of the Sexton Lumber Company's sawmill in Lethbridge, Bonavista Bay, is a commitment to the forestry industry in the province, said Natural Resources Minister Kathy Dunderdale in a news release today.
"Sexton Lumber has worked hard to maintain its lumber production in tough economic times. With this funding, we are supporting this company's strategy of continuous improvements in their operation, which may lead to new product and market development opportunities and additional employment."
The loan will be used to maintain 70 jobs at the lumber plant and another 105 jobs within the Bonavista Peninsula's forestry industry.
The loan will be repaid over 15 years.
"This is a tremendous day for our forest industry and for our company," said Kevin Sexton, president of Sexton Lumber Company in the release. "Government's commitment to this sector provides us with an opportunity to modernize our operation and to position it for expansion and diversification."