Stick plant promises 80 jobs

Other than being tasty treats, corn dogs and ice-cream bars have one thing in common: the sticks used to hang on to them while munching away.

For much of the past decade Global Sticks Inc. has manufactured about 22 per cent of the North American supply of the wooden implements at a factory in China.

But thanks to changing regulations and increased fees, the Asian country is no longer a competitive option. On Friday the company officially announced it is transferring its business to Oliver-Paipoonge, bringing 80 direct jobs to the Thunder Bay area in the process.

Global Sticks general manager Earl Metcalf said the company, which is expected to produce five billion sticks annually, looked at a number of locations around the globe, including Serbia, the Ukraine, Siberia and British Columbia, but decided Northwestern Ontario met all of its needs.

"We’re natural-resource driven. White birch is our prime resource, and actually the area of Thunder Bay has an abundance of it and it’s under-utilized. Basically it’s firewood," Metcalf said.

It didn’t hurt that the provincial government stepped up to the tune of $4.8 million in loans, loan guarantees and outright funding though the Northern Ontario Heritage Fund Corporation, the forest sector prosperity fund and the forest sector loan guarantee program.
The venture, two-and-a-half-years in the making, is a partnership with West Arthur Street’s Hood Logging Equipment, which has agreed to build the 60,000 sq. ft. plant and lease it to Global Sticks.

"When that’s finished, we’ll start moving in," Metcalf said.

It’s win-win for everyone, added Hood Logging president Bruce Hines, whose company has suffered "tremendously" over the past couple of years because of the downturn in the forest industry.

"This is a good boost for our company, really," Hines said, adding there will also be temporary construction jobs while the factory is built.

It’s good for the economy too, said Community Economic Development Fund CEO Steve Demmings.

"There have been more than 200 pulp mill closures in the last seven to 10 years. This is a really good example of creating the value in the forest industry," Demmings said. "So we should really celebrate."

Demmings added it’s a sign that other companies could find the city attractive from a location standpoint.

"Part of the reason that Mr. Metcalf is locating here is because he’s got a very strong hold in the U.S. market for his product and logistically Thunder Bay is a very good location to serve that mid-western market," Demmings said.

MPP Bill Mauro (Lib.-Thunder Bay-Atikokan) agreed, saying the long-term nature of the project, and the fact it steps away from traditional forestry practices is why his government was so willing to help.

"We need the companies to step up to the plate. We need people who want to come here and establish themselves. And when they express and interest, we can then try do what we can," Mauro said. "That Forest Sector Prosperity Fund has provided success in the past. Today, along with the Northern Ontario Heritage Fund, it provides success again."

Construction is expected to begin in October and Metcalf hopes to have the plant up and running by February 2010. Click here to submit a letter to the editor.