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Maple Leaf Ventures into Pork Processing

by 5m Editor
23 July 2008, at 5:16pm

TORONTO - Maple Leaf Foods has announced that it has begun the formal process of selling its Ontario pork processing business located in Burlington, Ontario.

The process will entail a solicitation of interest from potential purchasers, commencing immediately. The Company anticipates that the sale process will be completed by the end of 2008.


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"Our Burlington, Ontario business is well established, with long-standing customer relationships, a skilled and stable workforce and an excellent mix of value-added business"
Michael Vels, Chief Financial Officer of Maple Leaf Foods

"Our Burlington, Ontario business is well established, with long-standing customer relationships, a skilled and stable workforce and an excellent mix of value-added business," said Michael Vels, Chief Financial Officer of Maple Leaf Foods. "It operates one of the more efficient pork processing plants in North America, strategically located close to high density markets. Our investments in the plant and our people have resulted in a profitable business that represents an excellent investment in the global pork processing industry."

According to Maple Leaf Foods Inc., the 365,000 square foot Burlington facility has a processing capacity of up to 50,000 hogs per week, is located in close proximity to major domestic and U.S. markets, transportation routes and a skilled labour pool, and is licensed to export its pork products to nearly 50 countries worldwide. Maple Leaf has invested significant capital in this location over the past decade to develop a very extensive value-added business serving well-established domestic and international customers.

The decision to sell this business results from a re-focusing of Maple Leaf's protein operations towards prepared meats, meals and bakery, involving divestiture or exit of several of its primary processing and agriculturally oriented businesses.

Facility Overview

  • A highly profitable operation, with a committed and skilled work force, and a very extensive value-added business serving well- established domestic and international customers.
  • The 365,000 square foot pork processing facility is the largest in Ontario (third largest in Canada), and has a processing capacity of up to 50,000 hogs per week.
  • The plant is strategically located on a 15-acre parcel of land in a large industrial park in Burlington, Ontario, within close proximity to domestic and U.S. markets, transportation routes and a deep labour pool.
  • The facility is federally inspected by the Canadian Food Inspection Agency and is licensed to export its products to nearly 50 countries worldwide, including the United States, Japan, China and Russia.

Key Features

  • A highly advantageous location being in close proximity to densely populated markets and major transportation links - it has immediate access to major highways and has a market of 75 million people living within an eight hour drive of the plant.
  • A highly skilled, engaged and dedicated workforce of 1,200 employees, the majority of whom live within 15 kilometers of the facility.
  • The plant is profitable and highly efficient, approaching par in operating efficiencies when compared to the top eight U.S. facilities (as determined by Agrimetrics).
  • Currently processing an average of 42,000 hogs per week, Burlington is a high throughput facility, with the capacity and resources to process up to 50,000 hogs per week, providing excellent flexibility to optimize returns. Slaughter volume was 2.2M hogs in 2007 and volumes are expected to be consistent with this level in 2008.
  • Significant capital has been invested in the best available technology and practices in all areas of the plant since it was purchased in 1991, continuously improving the effectiveness and efficiency of the processing operations, including enhancements to the barn, cutting room, chilled and freezer capacity, refrigeration and security systems.
  • Significant capital has been invested in the best available technology and practices in all areas of the plant since it was purchased in 1991, continuously improving the effectiveness and efficiency of the processing operations, including enhancements to the barn, cutting room, chilled and freezer capacity, refrigeration and security systems.
  • Burlington has an exemplary compliance record in environmental, food safety and health and safety performance.