September 20, 2023

 

Olymel announces closure of pork and poultry plants

Canadian meat processor Olymel LP is set to close two facilities in the coming months, resulting in the loss of about 400 jobs within the company, Food Business News reported.

 

Olymel has disclosed plans to shutter its pork boning and packaging plant located in Princeville, Quebec, with the final day of operations scheduled for November 10. This decision will directly affect 301 employees.

 

Operations from the Princeville plant will be absorbed by three other Olymel slaughter, cutting, and boning facilities situated in Saint-Esprit, Yamachiche, and Ange-Gardien, Quebec.

 

Yanick Gervais, president and chief executive officer of Olymel, said there is a need for continuous organisational optimisation, particularly in the context of the fresh pork industry's recovery following two tumultuous years. The company's restructuring efforts are aimed at returning to profitability and enhancing overall efficiency.

 

Over the past year, the Princeville plant had shifted its operations towards value-added activities.

 

Additionally, Olymel has confirmed the closure of its poultry further processing plant in Paris, Ontario. This decision will impact approximately 93 employees, with the last day of operations set for December 22.

 

Concurrent with the Paris plant closure, Olymel intends to invest CAD 8 million (~US$5.9 million; CAD 1 = US$0.74) into its Oakville poultry operation, resulting in the creation of 62 new positions. The company's Orenda plant will also expand as part of the poultry business restructuring.

 

The decision to consolidate operations in Paris and Oakville stemmed from the fact that these facilities were operating below capacity.

 

Olymel plans to enhance its poultry further processing plant in Sainte-Rosalie by relocating equipment from the Paris plant to increase production capacity.

 

The company has also accelerated the closure of its Saint-Simon distribution centre, with operations expected to cease on January 26, 2024. This decision was driven by reduced throughput following a decline in slaughter volumes at the facility.

 

As part of its commitment to its employees, Olymel will offer relocation opportunities to workers at other Olymel facilities within Ontario and Quebec.

 

These announcements are part of Olymel's broader restructuring efforts in recent months, which included reducing swine production in several Western Canada units, closing a significant swine processing plant in Quebec, and shuttering two other pork processing plants in February.

 

-      Food Business News