MISSISSAUGA, ON, Dec. 22, 2014 /PRNewswire/ - Maple Leaf Foods
(MFI: TSX) today provided an update on the completion of its
network transition, a strategy that began with the Company's
primary pork processing operations, and since 2010 has focused on
its prepared meats plants and distribution network. In the past
four years, the Company has closed five plants, expanded three
others, consolidated 17 distribution centres into two and built a
400,000 square foot state-of the-art processing facility. To enable
this transition, the Company simultaneously simplified its product
portfolio to realize scale efficiencies and moved from multiple
operating systems to one integrated platform.
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 in Brampton, 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 in Winnipeg will close December 31, the sixth of eight plant closures.
At the two remaining legacy facilities in Kitchener, Ontario and Toronto, 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
"Maple Leaf Foods is in the final stage of completing a complex
strategy to step-change profitability in our business," said
Michael H. McCain, President and
CEO, Maple Leaf Foods. "While there is always some element of
uncertainty of timing given the unpredictable nature of start-ups,
we are clear on the benefits and see a much brighter picture for
2015. We have dramatically increased scale and technology,
consolidated production into fewer, highly efficient plants and
streamlined our product mix. We will complete the transition early
next year and have a clear path to realizing our financial
targets."
Maple Leaf Foods is Canada's
leading consumer packaged protein company headquartered in
Mississauga, Ontario. The Company
makes high-quality, great tasting, nutritious and innovative food
products under leading brands including Maple Leaf®, Maple Leaf
Prime®, Maple Leaf Natural Selections®, Schneiders®, Schneiders
Country Naturals® and Mina™. Maple Leaf employs approximately
12,000 people in its operations across Canada and exports to more than 20 global
markets including the U.S. and Asia.
SOURCE Maple Leaf Foods Inc.
