Global Sticks intends to create enough ice cream sticks, corn dog sticks, tongue depressors and paint paddles to give one to just about every person on the planet.
And they intend to do it in Northwestern Ontario, now that years of delays have been put to rest. Company president Reggie Nukovic said he’s probably aged 20 years in the 1,137 days since Global Sticks officials first announced their intentions to move their plant from China to Oliver-Paipoonge. But while he’d have liked a quicker path to Tuesday’s planned first shipment, Nukovic said he still can’t believe they’ve come this far.
"It’s huge," he said, humbled.
While rumours of problems with Ministry of the Environment approvals still persist as the reason for the delay, Nukovic said the real reason was an inability to secure funding for the plant, which will cost an estimated $20 million when all is said and done.
"We’re not a company that has endless amounts of cash," he said, showcasing his 60,000 sq. ft. facility that will create 45 immediate jobs and up to 130 when the plant hits capacity.
Banks just weren’t interested, Nukovic added.
"The answers coming from those guys were, ‘No.’
Ultimately two financial institutions took the risk on the plant, which also received more than $5 million from the province through a trio of programs, $2.9 million of which came from the Forest Sector Loan Guarantee Program. Another $1.32 million was provided by the Northern Ontario Heritage Fund Corporation and a $787,000 grant was made through the Forest Sector Prosperity Fund.
Nukovic said the move to Canada offered the company the best of both worlds.
"We have an excellent blend of highly skilled trained workers and we have the best technology in the world," he said. "It’s a big shift. You’re using the best of both worlds here in Canada, compared to just labour, labour, labour in China."
Of course, with labour rates expected to increase by 80 per cent over the next five years, it made sense from a financial standpoint to get out while the getting was good.
Steve Demmings, who heads Thunder Bay’s Community Economic Development Corporation, said the project is a tremendous example of the value-added opportunities available in the Northwestern Ontario forests, an industry decimated over the past decade as diminishing global demand for timber forced the closure of mills across the region.
Though Global Sticks faced plenty of challenges to arrive at the production stage, it was worth the wait, Demmings said.
"This is a very big deal and it’s a very good example of what other communities in Canada are trying to emulate, and that is the value-added forest side."
He added he never gave up hope it would happen, despite the delays. And that’s all in the past, Demmings said.
"The important thing is we’re here today to celebrate a major example of a significant employer coming to Thunder Bay."
The plant will also be home to Stormax International Inc., a manufacturer of machinery that specializes in the production, packing and stacking of sticks like the ones being made by Global Sticks. The company is expected to have up to 15 employees when at capacity.
"We wanted to be close to a novelty wooden stick manufacturer because it will help in terms of innovation and making continuous improvements," said Hans-Erik Aamand, Stormax vice-president. "It’s a mutually beneficial relationship and we are so thankful for all of the support we have received."
