A Nestlé factory in Trenton will be shutting down, which will leave nearly 200 people out of work.
Nestlé Canada made the announcement on Thursday, and the company says the decision “in no way reflects the performance of our dedicated team members.”
The Trenton plant makes dry blend and frozen products for the hospitality and restaurant sector.
“The food service industry is highly competitive and over the years volumes in the U.S. have continually outpaced Canadian volumes, resulting in over 80 per cent of Trenton’s annual production being shipped to the U.S.,” the company states in a news release.
“The Trenton factory is part of a North American manufacturing network and the U.S. foodservice factories have capacity to absorb the production.”
Nestlé will be shutting down the factory in stages, with the first layoff starting at the end of the year.
“I’m sure there was 190 people at Nestlé yesterday who were very shocked and very upset as well. This company has been here 50 years,” says Quinte West Mayor Jim Harrison.
Mayor Harrison says the loss will be felt by other Canadian businesses as well.
“We have to remember that there are many raw materials that this company used right here,” Harrison continues. “So, there’s a lot of spinoffs from this. It’s a big, big loss.”
The company says the factory will be fully shut down by mid-2022.
“We know this is very difficult news for our employees and the community,” says Nestlé’s release.
“Details regarding notice and severance packages, outplacement support and opportunities to apply for other roles within other Nestlé facilities will be provided in the coming months,” it continues.
Nestlé Canada says it will be working hand-in-hand with the union to support employees over the upcoming months, though Harrison says it’s more than just lost wages – it’s the loss of a stable and secure employer.
The Nestlé food service plant has been operating in Trenton since 1973, and was expanded 10 years ago.