November 23, 2010
 

Maple Leaf Foods plans to close its Larsen Packer further-processing and deli meat operations in Nova Scotia by the end of April 2011.

The Toronto food processing firm said on Wednesday (Nov 17) that it would start the gradual wind-down of operations at the pork facility at Berwick, about 20 kilometres west of Kentville, in February.

The 200,000-square-foot facility currently makes bacon, ham, sliced meats, sausage and deli goods under the Larsen, Simons, Brandywyne, Trim Cut, and Lite n Low brand names, and for private labels, employing about 280 people.

The plant's production is to be consolidated at Maple Leaf's other prepared meats facilities in New Brunswick and Ontario where it expects to have available capacity after completing minor changes.

Maple Leaf said it will continue to market products under the Larsen brand and meet its ongoing commitments to customers in Atlantic Canada through its other plants.

"Our industry is under mounting competitive pressure to become more efficient, and this means we have to make very difficult decisions," Maple Leaf CEO, Michael McCain said

"While this is the business reality, it is hard to make the necessary changes, particularly in a community where we have such an important presence."

The decision to shut down the Berwick further-processing plant follows the relatively quiet move to close Larsen's hog processing plant at Berwick in late March. Officials at the time were quoted on media outlets citing a "reduction in Maritime hog production".

Maple Leaf, which bought the Larsen operations in its takeover of Moncton-based Hub Meat Packers in February 2000, said Wednesday (Nov 17) that it pledges to work with all levels of government, economic development agencies and community leaders to support initiatives that will help ease the transition and support recovery efforts in the region.

Such projects would include "joint efforts" to find other uses for the Berwick facility that would "leverage the skill base of the workforce," the company said.

The workers can expect severances that go "beyond provincial labour requirements" as well as counselling services. They'll also be encouraged to seek work at other Maple Leaf plants, the company said.

Maple Leaf expects closing the plant to cost about CAD17 million (US$16.7 million) before tax, including severance, decommissioning, and asset write-downs.

Of that, the company said it will book about CAD10 million (US$9.8) in its fourth-quarter of 2010 and the remainder when the plant shuts in April.