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Gold/Mining/Energy : American Eco (ECGOF, ECX on Toronto exchange) -- Ignore unavailable to you. Want to Upgrade?

To: Eric O. who wrote (2524)	6/9/1998 11:55:00 PM
From: david james	Read Replies (3) \| Respond to of 2841

David: While I've been waiting for a big announcement, I was not expecting this one. I was thinking that the halt would be to announce the Sable business that you posted earlier this year. While this is great news, does it affect their ability to handle the Sable business? Eric Well from what I understand, Eco's MM Industra is near to full capacity with Sable business. This could be why they are acquiring the Pictou facility. Maybe Eco wanted to announced the business Pictou would be getting before they announce the Pictou acquisition. I found this on the web gov.ns.ca ECONOMIC DEVELOPMENT/TOURISM--MM Industra to Develop Pictou Yard ----------------------------------------------------------------- The Pictou Shipyard will soon have a new owner. MM Industra will position the yard for continued offshore work, fabrication and some ship repair, creating up to 200 jobs. Manning MacDonald, Minister of Economic Development and Tourism, and Besim Halef, president of MM Industra Ltd., announced an agreement in principle today in Pictou. "This much anticipated news is great for shipyard workers, the community and for the region," said Mr. MacDonald. "The new company is negotiating fabrication project contracts worldwide and that means solid job prospects at the yard." Both sides have agreed to a purchase price of $2.35 million, based on $750,000 for the existing facility (excluding the federal government wharf area, marine railway, common user facility and floating dry dock) and an additional $1.6 million in financing for improvements to bring the yard up to standard. The $1.6 million will be used to upgrade the fabrication hall, marine railway and electrical systems. MM Industra will complete these upgrades on behalf of the province. The company will also make a $1-million investment in equipment and to bring the yard to production. The province will forgive $1 million of the purchase price, based on MM Industra's investment. The company will also have the ability to receive additional credits based on full-time jobs created. MM Industra, owned by American Eco Ltd. of Houston, will be responsible for all future operating and capital costs associated with the shipyard. "We'll be endeavouring to create steady employment for up to 200 people in this region," said Mr. Halef. "We're looking forward to working with the existing union and to being a good corporate citizen for the community." Added Mr. MacDonald: "It's great to deal with a company that has confidence in the future of the Pictou Shipyard. Together, we're creating much-needed jobs in rural Nova Scotia and securing a bright future for the community." -30- Contact: Steve Fairbairn Economic Development and Tourism 902-424-5836 E-mail:econ.fairbair@gov.ns.ca