Thursday, March 20, 2008

Maple Leaf to close Winnipeg plant, expand other facilities

By Tom Johnston on 3/19/2008 for Meatingplace.com

Canadian pork processor Maple Leaf Foods said Tuesday it will close its Warman Road plant in Winnipeg and expand other nearby facilities.

The decision to end operations at Warman Road by the end of September comes as Maple Leaf invests almost $50 million to support the expansion of value-added cut operations and hog slaughter at its Brandon, Man., plant and $25 million to expand its Lagimodiere Road plant in Winnipeg.

The Warman Road plant employs some 650 people, "who will be encouraged to apply for new jobs at the Lagimodiere Road and Brandon plants" and be provided financial and outplacement services, the company said in a news release.

Expansion, consolidation

Expansion of the Brandon plant will begin in June and be completed in September. Hog slaughter will increase to 86,000 hogs per week from 75,000 hogs per week by the end of 2008 as the company consolidates all of its primary pork processing there.

The expansion of Lagimodiere Road represents the company's aim to consolidate its ham boning operations in western Canada into one dedicated facility.

By the end of 2008, Maple Leaf will have created more than 1,100 new jobs at these facilities with support from an investment of $120 million.

"We sincerely regret the impact on our employees at Warman Road, and will proactively support them to secure new employment at other Maple Leaf plants in the local economy," the company said.

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