Dr Oetker to close pizza manufacturing plant in Canada

Oetker Group’s Canadian subsidiary Dr Oetker is planning to close its pizza manufacturing plant located in Grand Falls, New Brunswick, by May this year.

The company noted that the increased price and production costs have led to the decision to shut their operations in the region.

Dr Oetker employees at the Grand Falls facility will receive a severance package as well as medical and dental benefits until 31 December.

The company will also establish a C$4m ($3.2m) Grand Falls Community Fund to assist with job retraining and economic development in the region.

Dr Oetker executive vice-president Cécile Van Zandijcke said: “We care deeply about the people on our Grand Falls team and we will sit down individually with them to discuss their own specific path forward. That will be our immediate focus now.

“This very difficult announcement does not reflect on the quality of work and dedication of our Grand Falls employees.

“There is nothing our Grand Falls employees could have done differently.

“Food manufacturers have been facing severe economic pressures over the last few years and today’s market has become ultra-competitive.

“In order for Dr Oetker to continue operating efficiently within this challenging environment, we needed to restructure our Canadian Manufacturing Operation.”

The pizza manufacturer intends to move 70% of manufacturing operations to its Hub production facility in London, Ontario, while 30% of production will move to its Lodi, New Jersey plant.