Holding company to close Toronto meat processing plant
Premium Brands Holdings plans to close its meat processing plant in Toronto in December 2015, affecting 200 employees
VANCOUVER—Premium Brands Holdings Corp. said it plans to close its meat processing plant in Toronto later this year.
The company said it “looked at various options” to keep the leased facility open, but “none were economically feasible” given its age and location.
The plant, which makes branded and private label processed meats for a variety of retail and food service customers, will close its doors in December.
The company said it plans to gradually transition “a portion” of the operations to its other production facilities in Ontario starting this spring.
The closure will affect approximately 200 employees, each of whom will receive severance packages, according to the company.
“While necessary, we regret the impact the shutdown will have on our employees at the Toronto plant,” John Beliveau, Premium Brands’ chief operating officer, said in a statement.
“We greatly appreciate their years of service and dedication and will do our best to help them through this time of transition.”
The costs associated with the shutdown, which will consist primarily of employee severance outlays, are estimated at $7.3 million.
“The shutdown of the Toronto plant and the corresponding transfer of production to our three other state-of-the-art or recently renovated deli meat production facilities in Ontario, combined with the investments we are making in expanding the capacity of these facilities, is expected to result in an increase in our pre-tax earnings of approximately $2.4 million,” Beliveau said.