US-based Pinnacle Foods, which is being acquired by local peer Conagra Brands, has announced it is closing down a plant in Canada.

Its facility at Laval, Quebec, is to be shuttered following the news that a third party production contract facilitated at the site is not to be renewed.

Some 150 employees will be affected when the plant ceases operation in November.

The group, which has brands including Birds Eye (in the US), Duncan Hines and Earth Balance, said in a statement: “Consistent with the operating imperative of a high performing organisation, Pinnacle Foods continuously evaluates the effectiveness and efficiency of manufacturing facilities in its supply chain. 

“Key to optimising the network is operating every plant as close to full capacity as possible.”

Pinnacle said the reduction in utilisation following the third party contract cancellation “dramatically affects the efficiency of the plant”.

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By GlobalData

It added: “As a result, Pinnacle has decided to move production of its gluten-free products to alternative locations and close the Laval facility.”

Conagra agreed to pay US$10.9bn for New Jersey-based Pinnacle at the end of June.

just-food Analysis: Can Conagra weather shifting trends with Pinnacle Foods acquisition?