Province increases loan to Irving-owned Master Packaging to $9M

Irving-owned Master Packaging is using a $4.5 million P.E.I. government loan to even out its production process, and another $4.5 million to re-finance an existing loan.

The company, based in Borden-Carleton and owned by Mary Jean Irving, is purchasing a die cutter with the loan, which is used to cut cardboard for boxes.

This third die cutter will allow production of boxes at the facility to keep pace with the capacity of the printing presses that label them, officials said.

The P.E.I. cabinet has just approved the $4.5 million loan for the die cutter that was first announced back in March, andalso approved a further $4.5 million to re-finance an existing loan with the company.

"They've been a client here through Finance PEI for over 22 years. Every loan they've ever had through government is in good standing. They've never missed a payment," said P.E.I. Economic Growth Minister Matthew MacKay.

"The thing that excited me about it is we're going to make money from lending the Irvings money."

MacKay said the loan would generate a little over $1.2 million in interest.

Master Packaging currently employs about 190 people. In March, government said the expansion was expected to create another four jobs.

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