Olymel Announces Massive Closures Of Food Production Facilities
Olymel, a prominent player in the meat production and processing industry, is implementing significant changes to address ongoing market challenges. The company has announced the closure of two plants in Quebec and Ontario while expediting the shutdown of another facility, affecting approximately 400 employees.
In a press release, Olymel stated that these closures are part of their strategic efforts to reorganize their business lines and optimize operations across their facilities.
“Today more than ever, it is necessary to continue to rethink our organization in order to optimize all of our activities,” said CEO Yanick Gervais. “This decision, difficult but necessary, is part of Olymel’s desire to continue our efforts to return to profitability in the sector, for the benefit of our entire organization.”
Specifically, the company will be closing a pork boning and packaging plant in Princeville, Quebec, in November, impacting 301 employees. Additionally, a poultry processing plant in Paris, Ontario, will also be closed, affecting 93 workers. Olymel has assured affected employees that they will have opportunities to transfer to other company facilities.
“On behalf of the company, I would like to extend appreciation to them for their years of loyal service. Between now and the closure in December, Olymel will make every effort to help in the relocation or transition to employment in another sector,” Gervais told employees in a statement.
In addition to these newly announced closures, Olymel is fast-tracking the planned closure of its Saint-Simon distribution centre, moving the deadline up by more than a year to the end of January. This decision will impact 15 employees.
Following the closure of the Paris plant, Olymel plans to enhance the capacity and production of its other poultry plants. The Oakville poultry plant is set to receive a substantial upgrade, including the addition of a new production line, with an investment of $8 million and the creation of 62 new jobs. Gervais noted that both the Paris and Oakville plants had been operating below capacity, and consolidating their operations would lead to increased efficiency and cost savings.
Olymel has also expressed its commitment to working closely with authorities to facilitate the relocation of the 33 temporary foreign workers at the Princeville plant. Gervais acknowledged the challenges faced by the fresh pork industry, which has been gradually recovering after two tumultuous years, necessitating operational restructuring.
The reorganization within the Ontario poultry sector will also yield positive outcomes for Olymel’s poultry further processing plant in Sainte-Rosalie, situated in the Saint-Hyacinthe region. In essence, the transfer of equipment from the Paris plant to Sainte-Rosalie will result in an increased production capacity for specific poultry products, potentially leading to the creation of additional jobs at the facility, which currently employs 500 individuals.
After the closure of the Paris plant, Olymel will maintain a presence with five plants in Ontario: the Port Colborne poultry slaughtering, cutting, and boning plant; the Oakville further processing plant; the Westwyn poultry boning and further processing plant, as well as the Orenda breaded products plant, all located in Brampton; and the pork further processing plant situated in Cornwall. In total, Olymel operates 24 pork and poultry processing plants and maintains five distribution centers across Canada.
This latest announcement follows a series of closures and layoffs by Olymel throughout the year. In May, the company revealed plans to lay off approximately 80 workers at its pig farms in Alberta and Saskatchewan, as it prepared to close six production facilities in the coming months. The decision was attributed to ongoing financial losses and uncertainties in the hog and pork markets, stemming from limited global market access and high feed costs. By that time, Olymel had already shuttered three other facilities in 2023, including two processing plants and one slaughtering facility in Quebec.
Information for this story was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
