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Maple Leaf to consolidate further processed poultry operations

Canadian food processor, Maple Leaf Foods, is to consolidate its further processed poultry operations into its Brantford and Mississauga Ontario facilities where there is available capacity and opportunities for future growth.

"We have an immediate opportunity to increase efficiency and capacity utilisation in our value-added poultry business, which this consolidation will achieve," said Michael H. McCain, President and CEO, Maple Leaf Foods. "Value-added chicken is an important market for us and we plan to grow the business by focusing our operations and investments in our Mississauga and Brantford plants."

The Company will transfer production from its 42,000 square foot facility in Ayr, Ontario and close the plant in May 2012. Investments totalling approximately $6.5 million will be made in Mississauga and Brantford to support the production transfers. In addition, the Company will incur approximately $5.6 million before taxes in restructuring costs, of which approximately $4.2 million are cash costs.

The investment in the Mississauga facility will create approximately 75 new hourly and salaried positions at that facility. The closure of the Ayr plant will result in a net reduction of approximately 100 positions.

"We deeply regret the impact on our people. We will treat them fairly and support them through this transition to secure new employment, either within Maple Leaf or in the broader economy," said McCain.

Source: Maple Leaf Foods

Editor WorldPoultry

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