S. Porcupine machine shop owner plans expansion.

South Porcupine-Timmins' growth is not solely for the mining giants. Norfab Metal and Machine's future expansion makes an argument this local company will also help grow with the economy.

Terry Ditullio, office administrator, recently acquired 50 percent of Norfab's shares from his father, Walter, who co-founded the Porcupine-based company in 1993 with Dan Katic, now production manager. On the heels of his father's retirement and taking over part ownership of the custom fabricating and manufacturing shop, Ditullio is always looking at new ideas to maintain a competitive edge.

The 11-year-old company is reaping the benefits of business sparked by high gold and base-metal prices, which have increased activity in the Timmins Mining Camp.

Moving from their 15,000-square-foot shop to a 25,000-sq.-ft. building 1.5 kilometres down the road on Highway 101, Norfab is investing approximately $2.5 million.

"It is a result of the PJV (Porcupine Joint Venture) pit expansion project," Ditullio says. "Dome bought our building and will use it for warehousing."

The shovel is now in the ground and by the fall they will be erecting the shell. Construction inside will be done over the winter with the final move in fall 2006. Since they don't have to be out until June 2007, Ditullio says they will build the plant exactly the way they want.

"We'll put everything under one roof," he says. "We're going to improve the layout of equipment and cranes, put in larger doors and in-floor heating instead of gas, which will improve efficiency in production."

Presently, the fabrication is in one building and the machine shop is in the other. Norfab custom manufactures a host of equipment and consumables for the mining and forest industries, from ore cars, personnel carriers, underground rail equipment and overhaul buckets, to their own patented line of mill-hole liner systems: chute liners for underground. Sales in custom fabrication are highest, with ore cars being their niche market.

"That is what separates us from the rest," Ditullio says. "We make them well and they are cost-efficient."

In the last couple of years, they have added to their staff. Norfab employs as many as 60 people at any one time, depending upon the contract, with a consistent full-time staff of 27.

Revenues range from $3 to $5 million.

Presently, export sales are five percent of total business, although they are trying to create more of a presence internationally. Some of Norfab's main customers include Falconbridge's Kidd Creek Mine and Inco, as well as forestry giants Tembec and Grant Forest Products. However, Ditullio sees future business prospects with PJV's mine expansion project and De Beers Victor Mine site. Meanwhile, Ditullio looks forward to planning and working in the new shop with its improved cost and production efficiencies, helping them keep their competitive edge.

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www.norfabmetal.ca

By ADELLE LARMOUR

Northern Ontario Business