TORONTO – Maple Leaf Foods, Inc. plans to close its prepared meats facility in Surrey, B.C. on Sept. 30. Production will be consolidated to the company’s prepared meats facilities in Saskatoon, Manitoba, and Ontario.
The closure will affect approximately 165 employees. Maple Leaf Foods said closure costs, including severance, decommissioning and asset write-downs, will amount to approximately C$12.1 million ($12.25 million) before tax, C$4.6 million of which will be cash expenses. Of the total closure costs, approximately C$4 million will be recorded in the first quarter of 2011 and the remainder when the facility is decommissioned in the fourth quarter of 2011.
“The closure of the Surrey plant is an important step towards consolidating our manufacturing at fewer, dedicated scale plants, resulting in reduced supply chain costs and better efficiencies,” said Rick Young, executive vice-president of Consumer Foods for Maple Leaf. “While necessary, we regret the impact on our skilled and dedicated employees.”
In November, Maple Leaf Foods said it was closing its prepared meats facility in Berwick, N.S., and moving production to its processing plants in New Brunswick and Ontario.