RKO Steel Limited is increasing its competitive edge and creating 30 new jobs with support from the province’s new manufacturing and processing investment credit.
RKO is the first company to receive the credit from the province for the purchase and installation of newer, more advanced technology that increases productivity.
The company received a credit of almost $40,000 towards the purchase of a new piece of equipment – a beam drill and saw – that streamlines its manufacturing process, provides greater flexibility for specifications and increases the speed and output of its product. The increased productivity resulted in the addition of a night shift and the hiring of more workers.
“We are always looking for new ways to improve our processes so we can continue to grow and expand our business,” says Ian Oulton, president, RKO Steel. “This new, more advanced technology has enabled us to produce a better product at a faster speed and has also reduced our operating costs. All of these things help us to stay competitive.”
RKO Steel is a locally owned and managed steel and metal fabrication company with a reputation for ensuring optimal efficiency of its operations. It processes more than 8,000 tonnes of steel each year and employs about 200 workers. Customers include Costco, Sobeys, Atlantic Superstore, Michelin and Marine Atlantic.
The province introduced the manufacturing and processing investment credit this spring. Administered by the Department of Economic and Rural Development, the program reimburses companies 10 per cent of the cost of new equipment or technology that increases productivity, up to a maximum of $1 million. Purchases must exceed $50,000. The credit builds on the 10 per cent Atlantic Investment Tax Credit offered by the federal government for manufacturing and processing activities.
‘This is a great example of how the province is supporting greater innovation and productivity in businesses,” says Premier Darrell Dexter. “RKO Steel’s investment in new technology and equipment to improve their productivity and competitiveness is helping to create jobs and grow the province’s economy.”
