02/07/2014 03:58 EST | Updated 04/09/2014 05:59 EDT

P.E.I. government financing steel plant expansion in hopes of creating 40 jobs

CHARLOTTETOWN - The Prince Edward Island government is providing $3.7 million in financing towards the expansion of a steel fabrication plant in Borden-Carleton.

MacDougall Steel Erectors Inc. expects the $4.5-million project will create up to 40 jobs over the next two to three years.

The company is expanding its fabrication shop and purchasing new automated production equipment to increase its production capacity.

The province says it's consolidating an existing $1.4 million loan for an earlier expansion.

It says it's providing $585,000 in labour rebates towards the creation of 40 new positions.