February 8, 2012

Maple Leaf Foods to consolidate processed poultry operations in Ontario

Maple Leaf Foods announced Tuesday (Feb 7) that it will consolidate its 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."

This includes fully cooked, partially cooked or marinated frozen chicken products prepared for Retail and Food Service customers.  The category excludes refrigerated prepared chicken products such as deli meat and meal solutions.

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 CAD6.5 million (US$6.49 million) will be made in Mississauga and Brantford to support the production transfers. 

In addition, the company will incur approximately CAD5.6 million (US$5.59 million) before taxes in restructuring costs, of which approximately CAD4.2 million (US$4.19 million) are cash costs.

Maple Leaf Foods Inc is a leading Canadian value-added meat, meals and bakery company committed to delivering quality food products to consumers around the world. Headquartered in Toronto, Canada, the company employs approximately 21,000 people at its operations across Canada and in the US, Europe and Asia.