Maple Leaf Foods provides update on its network transition
The Company is nearing completion of this structural shift in its supply chain, with current status as follows:
- The expanded Lagimodiere plant in
Winnipeg, Manitoba is fully commissioned with only minor optimization remaining - The McLeod plant in
Saskatoon, Saskatchewan is in the final stages of transition and while not yet operating to expectations, performance is improving and variances are not material to achieving the Company's overall strategic targets - The consolidation of the eastern distribution network is complete and achieving its targets
- The expanded
Walker Drive facility inBrampton, Ontario is fully commissioned with only minor optimization remaining - Strategic capital spending is complete (with the exception of performance guarantee holdbacks and cash flow timing) and total capital spending over this period of investment is largely in-line with 2010 estimates
- Wiener production at the new facility in
Hamilton, Ontario is nearly fully commissioned with minor adjustments expected to be completed by the end of the first quarter of 2015. Commissioning of the final sliced meats and deli operations is well underway, and based on current operating performance trend lines, is expected to achieve full production by the end of the first quarter - The processing plant on
Panet Road inWinnipeg will closeDecember 31 , the sixth of eight plant closures. At the two remaining legacy facilities inKitchener, Ontario andToronto , production has significantly ramped down. While some capacity will be maintained to ensure the Company meets its commercial requirements, these plants are expected to close by the end of the first quarter of 2015
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SOURCE
Investor Contact: Nick Boland, VP Investor Relations, 416-926-2005; Media Contact: David Bauer, Director, Public Affairs, 416-926-2020