High Liner Foods will
consolidate supply chain
May 9, 2012 9:59 AM
High Liner Foods Inc (TSX: HLF; HLF.A) will be consolidating its North American supply chain as a result of overcapacity at several plants and the acquisition of a more modern plant in Newport News VA in December 2011.
The two affected facilities—located in Burin, Newfoundland and Labrador, and Danvers MA—are the company’s highest-cost and most underutilized facilities.
The Burin plant is scheduled to close by the end of December 2012. This plant employs 121 full-time employees (13 non-union and 108 union), with 28 casual employees as well as an additional 29 inactive employees on long-term disability. A small product development office in St John’s, Newfoundland and Labrador, will also close at the end of 2012. Meanwhile, all commitments made by High Liner Foods to the government of Newfoundland and Labrador in 2007 as part of the purchase agreement of the Fishery Products International assets will be respected. As part of that commitment, High Liner Foods has invested more than $4 million toward the Burin Employee Life and Health Trust, research and development, and other capital expenditures.
The plant in Danvers will remain open until the first quarter of 2013. It employs more than 160 people.
High Liner Foods processes and markets prepared frozen seafood. Its retail branded products are sold throughout the United States, Canada, and Mexico under the High Liner, Fisher Boy, FPI, Mirabel, Viking, Sea Cuisine, Icelandic Seafood, Samband of Iceland, Seastar, Seaside, and Royal Sea labels.
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