By TERRY PUGH

A steel fabricating company intends to nearly double the size of its Martensville production facility this year.

IWL Steel Fabricators manufactures piping, structural steel, chutes and conveyors for the mining industry; as well as ducting and steel storage products. The company was founded in the 1950s and is currently owned by Clearwater River Dene Nation. It has facilities in both Saskatoon and Martensville.

The company intends to expand its 12,000 square-foot Martensville plant on 9th Street North; adding over 10,000 square feet of new building area. The total cost of the development is well over $3 million, according to a report tabled at the Martensville City Council meeting on Tuesday, January 21.

The expansion will boost the total number of employees at the Martensville facility from 14 to a maximum of 32, working across two shifts.

The expansion is intended to improve production at the plant by adding more floor space and increasing the building height to accommodate 25 foot-high overhead doors, two 30-tonne cranes and a one-tonne crane. The new addition will also include a washroom, offices, training area and lunchroom for employees.

According to the city administration report to the January 21 council meeting, IWL has experienced significant growth and automation over the past several years as a result of growth in the natural resource sectors, including potash, uranium, oil and gas sectors in Saskatchewan and Alberta. Recently, new certifications have opened additional opportunities for projects for pressure vessel and piping fabrication.

The investment by the company meets the requirements for a tax incentive under the city’s Economic Business Incentive Bylaw. Martensville City Council voted at its January 21 meeting to approve a five-year tax break for the company upon completion of the expansion project.

The bylaw, aimed at encouraging business investment and job creation in the City of Martensville, provides a graduated scale of incentives based on the size of the business investment and the number of new employees hired. An investment of $250,000 to $350,000 qualifies for a one-year tax break; an investment of $350,000 to $500,000 qualifies for a two-year tax break; a  $500,000 to $750,000 is needed for a three-year break; a $750,000 to $1 million investment qualifies for a four-year break; and an investment of over $1 million qualifies a company for a full five-year tax break.

However, the tax exemption does not apply to the assessment of the land itself; base taxes remain applicable on land and any pre-existing buildings or improvements. The tax exemption comes into effect once the expansion, as a result of new construction, is assessable; and remains in effect providing the development proceeds within the specified time frame and adheres to the intended purpose.

As part of the deal for the five-year tax exemption, IWL has agreed to pave a portion of its parking lot connected to the expansion project. However, the paving of the lot does not have to be done until the city has completed the paving of 9th Street North, sometime in the future.