News Flashes

Expansion, Modernization, Restructuring

Softimage, a company specializing in the design of 3D video animation software, is continuing to expand its team of programmer-developers, which will nearly double this year, from 50 to 90. This means that it will be investing between $3 and $5 million to enlarge its Montréal premises. Microsoft, which acquired Softimage in 1994 for $175 million, is counting on the Montréal unit to lead the way in video games and other products for the general public, which the company intends to offer on the information highway.

Goodyear will be investing some $22 million to expand its automobile tire plant in Valleyfield to 23,000 square feet and boost production capacity by 10%. The roughly 1,300 employees expect to start using the new equipment by the first quarter of 1996.

Altra Marine Products, a subsidiary of the U.S. company Outboard Marine Corp. is investing $2 million in building a new plant adjoining its Princeville facilities, creating 50 jobs and increasing its production capacity by 40%. Exports of pleasure boats will now account for up to 50% of its output.

Hong Kong Bank of Canada, with 112 breanches across the country, has just opened a new international trade office in its International Financial Centre (IFC) in Montréal. IFCs now enjoy a number of tax advantages, which partly explains their growing success.

The American giant Nike has just acquired Canstar Sports of Montréal, a manufacturer of skates and hockey equipment, for $545 million. Canstar already employs nearly 700 workers in Québec, and is looking at hiring 300 more to increase its output. Canstar's excellent reputation as a manufacturer of inline skates was one of the factors in the acquisition.

The Dutch firm Gilde Funds, which manages three risk capital funds worth over $175 million, has selected a small high-tech firm in Montréal, Ad-Opt Carmen, as its first investment in Canada. The Montréal campany makes computerized schedule planning systems for airlines. With the $2 million injected by Gilde Fund and its New York partner Morgan Holland, Ad-Opt Carmen expects to double its sales in 1995, to reach over $15 million.

Canadian Reynolds Metals Co. Ltd. will be investing $17 million in 1995 in its Baie- Comeau plant, to rebuild a rolling mill used to produce aluminum rods for manufacturers of electric cables and wiring.