Housing agreements with Japan announced

Prime Minister Jean Chrétien today announced the signing of agreements worth more than $195 million by seven Canadian manufacturers for the supply of manufactured homes to Japan.

"With the tremendous popularity of Western-style prefabricated housing in Japan, these agreements attest to the reputation of Canadian housing manufacturers for reliable housing products, high standards and quality construction," said the Prime Minister. "Partnerships of this kind strengthen our economic ties with Japan and build on the remarkable success of Canada's import housing industry."

The signing ceremony took place at the JETRO Imported Housing Model Park in Nagoya, Japan. The Canadian companies involved are: SRI Homes International Inc.; Northcrest Industries Ltd.; Viceroy Homes Ltd.; Fermco Industries Ltd.; Douglas Homes; Advatech Homes Canada Inc.; and Igloo Building Supplies Group.

The agreements, which cover periods of up to five years, are based on the sales targets of the Japanese developers involved.

Canadian building products are in great demand in Japan. Canadian exports of pre-fabricated buildings to Japan increased to $131 million in 1995, making Canada the largest exporter in this market. Imports of Canadian-manufactured homes more than doubled in 1995 and were showing an increase of over 60 per cent for the first eight months of 1996.

Japan's Ministry of Finance statistics show that Canada's share of the Japanese market for imported building products rose to nearly 46 per cent for the first nine months of 1996. In comparison, the United States' share was 29 per cent.

The following provides background information on the signatories to the agreements:

Advatech Homes Canada Inc. (Calgary, Alberta) signed a $15 million contract with Giga Corporation for the purchase of seven homes with a provision to buy a total of 50 packaged homes over the next year. Packages include home appliances, lighting fixtures and furniture.

Douglas Homes (Vancouver, British Columbia) signed an MOU for the sale of a minimum of 50 panelized houses over two years (1997-98) with Okaya Construction of Nagoya.

Fermco Industries Ltd. (Ste. Adelphe, Québec) signed a memorandum of understanding (MOU) valued at $20 million for the supply of 550 homes over five years with Excellent Homes Japan. Fermco also signed an agreement for the sale of 100 manufactured homes packages during 1997 to Icco Housing of Nagoya, valued at an estimated $5 million.

Igloo Building Supplies Group (Edmonton, Alberta) signed an MOU for the supply of 80 homes over 2 years (1997-98).

Northcrest Industries Ltd (Langley, British Columbia) signed an agreement with Fujiken Co. Ltd. for the purchase of 420 houses over three years (1997-1999) worth $20 million.

SRI Homes International (Kelowna, British Columbia) signed an agreement for the supply of 800 homes worth $60 million with JAL Trading, a subsidiary of Japan Airlines. SRI also signed an agreement for the supply of 1,300 homes to Koki Corporation, at an estimated value of $65 million.

Viceroy Homes Ltd. (Scarborough, Ontario) signed an open-ended agreement with Aisho Construction as well as with Kato Kenko of Nagoya for an estimated total value of between $1 to $3.5 million.

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