ST-HYACINTHE, Que. – The Olymel meat processing company says it won’t rebuild its bacon processing plant in Princeville, Que., that was destroyed by fire last May.
The company says it has sufficient capacity at its facilities in Drummondville, Que., and Cornwall, Ont., considering declining market conditions and demand for the product.
Olymel notified employees, the union and the municipality of its “final” decision on Tuesday.
Lower volumes, declining hog production, fierce competition from U.S. manufacturers and the strong Canadian dollar were among the factors that led to the decision.
Some 180 workers employed at the facility were eligible for temporary jobs at other Olymel facilities within 100 kilometres. About 90 employees signed up for the program which helped to fill positions, especially in nearby Drummondville.
The temporary program has come to an end but employees laid off because of the fire will have hiring priority for permanent jobs. Olymel has 162 available positions at nine other facilities in the province.
It will continue to cover transportation costs until the end of the year from Princeville, located about 100 km southwest of Quebec.
The May 6 fire completely destroyed the Princeville plant’s injecting, smoking and precooked bacon operations. A section of the plant that included pressing, bulk slicing and packaging was heavily damaged and will soon be demolished.
Olymel is a leading Canadian pork and poultry processing company employing more than 10,000 people at facilities in Quebec, Ontario and Alberta. Nearly half of its production is exported mainly to the United States, Japan and Australia, as well as some 60 other countries.
Annual sales are $2 billion for its products under the Olymel, Lafleur and Flamingo brands.
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