ST. HYACINTHE, Quebec – Olymel LP will cease ham deboning operations at the company’s processing plant in St. Hyacinthe but will continue rendering operations for lard production and frozen product storage. The company said 340 positions will be eliminated as a result of the cost-cutting measure.
"We regret to announce that ham deboning operations at the plant in St. Hyacinthe will be terminated within about a one-year time frame,” Réjean Nadeau, president and CEO, said in a statement. “This solution was deemed necessary after a thorough analysis of processing costs with a view to making all our operations more efficient.”
Olymel said ham deboning activities will be transferred to facilities engaged in slaughtering and butchering operations. The company expects the transfer to improve operational efficiency and reduce costs considerably in terms of both fixed costs and shipping.
The company noted that the St. Esprit, Yamachiche and Vallée-Jonction plants, which do slaughtering and butchering, are geographically closer to the further processing plants they supply with pork.
As for the St. Hyacinth plant, Olymel is studying other options to find a new use for the plant that would fulfill other needs for the company.
“This is a difficult decision, but a necessary one if we are to achieve the conditions of efficiency and profitability that will enable us to maintain the bulk of other jobs across all our operations, and even create new ones,” Réjean said.