Maple Leaf Foods is to close a poultry facility in Canada to boost efficiency, hitting around 100 jobs.
The plant in the town of Ayr in Ontario will close in May. Maple Leaf said production would move to plants in Brantford and Mississauga.
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“We have an immediate opportunity to increase efficiency and capacity utilisation in our value-added poultry business, which this consolidation will achieve,” president and CEO Michael McCain said. “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.”
Maple Leaf’s latest financial results show that, in the nine months to the end of September, adjusted operating earnings from its “meat products group”, which includes value-added poultry, jumped 57.2% on the back of higher sales and cost cuts.
Maple Leaf is revamping its production and distribution network to drive down costs and boost margins. It announced the plans in 2010; in October, it secured board approval for the second part of the restructuring, which will lead to a new prepared meats facility in Hamilton but the closure of six other facilities.
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