Maple Leaf to close poultry plant
January 16, 2007
by FoodBusinessNews.net Staff
HALIFAX, NOVA SCOTIA — Maple Leaf Foods Inc. will close its fresh poultry processing facility in Canard, Nova Scotia at the end of April 2007. The Canard facility, which is over 50 years old, produces fresh poultry products, including branded and private label branded chicken, primarily for customers in Atlantic Canada.
The advanced age and insufficient volume of the plant failed to justify the major investment required to improve the cost structure and make the plant successful, said Bruce McCullagh, senior vice-president of Poultry Operations.
The company expects that closure costs, including severance, decommissioning and asset write-downs, will result in a restructuring charge of approximately $8.5 million before tax, of which approximately $3 million will be recorded in the fourth quarter of 2006 and the remainder when the facility is decommissioned in 2007.