Canada-based meat packing food processing company Olymel has decided to cease operations at its Vanier plant (Triomphe Foods) in Québec City due to unprofitable conditions.

The decision will come into effect on 10 May, as per the provisions of the ‘Act respecting labour standards’.

Olymel management has also offered a compensation and relocation programme for all 47 employees affected by the closure.

The Vanier plant was part of Olymel’s acquisition of Triomphe Foods in 2018. The deal also included two facilities located in Blainville and Laval in the Montréal area.

The Vanier plant is currently engaged in the production of bologna, pepperoni and spaghetti sauce.

“In all the scenarios considered, the costs of modernising the Vanier plant would not have allowed us to achieve profitability.”

The company noted that these operations will be moved to its Blainville plant, located in the north of Montréal, and will require an additional investment of C$2m ($1.5m). The move will create 30 employment opportunities.

Additionally, the company anticipates that the move will foster efficiency gains, economies of scale and increased production capacity, while also eliminating overlap.

Olymel president and CEO Réjean Nadeau said: “Olymel’s management made the difficult decision to close the Vanier plant in the general interest of the company. In all the scenarios considered, the costs of modernising the Vanier plant would not have allowed us to achieve profitability.

“This decision will enable us to strengthen our production centres for the future, to invest in achieving even more efficiency and even to create new jobs, as will be the case in Blainville. I want to thank all the employees of the Vanier plant for their work over the years.”

The company noted that it will set up a re-employment committee to help employees who choose to move to another sector or to undergo training in another area.

It also intends to facilitate the transition of people who wish to be relocated to its plant in St-Henri-de-Lévis by providing shuttles for their transportation from Québec City.

Last November, Olymel completed the acquisition of Pinty’s Delicious Foods, an Ontario-based poultry slaughtering and processing company that supplies fully cooked products, for an undisclosed amount.