The management of Olymel L.P. has decided to cease operations at its Vanier plant in Québec City. The company says it will offer a compensation and relocation program for all 47 employees affected by the closure, which comes into effect May 10.
Olymel also says the Vanier plant's activities, such as the production of cretons, bologna, pepperoni and spaghetti sauce, will now be carried out at its Blainville plant, north of Montréal, which will require an additional investment of $2 million and will create 30 jobs. The company believes the move will “foster efficiency gains, economies of scale, and increased production capacity, while also eliminating overlap.”
Olymel will pay severance benefits to each employee affected by the closure of the Vanier plant according to the employment contract. In addition, all employees will be offered a new job at the Olymel pork processing plant in St-Henri-de-Lévis, on the south shore of Québec City, whose operations are very similar to those of the Vanier plant. Vanier employees who choose to relocate will also retain their recognized years of service with respect to salaries and benefits.
"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 modernizing 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," says president and CEO Réjean Nadeau.
As reported by Grocery Business, Olymel acquired Triomphe Foods in June 2018, in a transaction that included three plants: two in Blainville and Laval in the Montréal area plus the Vanier plant in Québec City.