Olymel closes a plant in Saint-Hyacinthe
Factory operations will continue until 10 next February.
Olymel will close a plant in Saint-Hyacinthe in February, which will result in the loss of 107 jobs, the food processor announced Thursday.
< p class="e-p">The cooperative mentioned that the volumes of products to be packaged have decreased at its plant located on Saint-Jacques Street. Its other plants responsible for slaughtering and cutting are able to take over for packing activities.
The ax falls as Olymel reorganizes its activities. Last October, she had also announced the elimination of 177 executive positions within the cooperative.
Olymel must navigate against several headwinds, including labor shortages, supply chain disruptions, commodity price inflation and global economic uncertainty.
The company's difficulties have repercussions on the Quebec food industry while Olymel accounts for 80% of pork processing in Quebec.
In February, Sollio, the parent company of the Olymel cooperative, indicated that changes were needed in the activities of its division.
We will reassess all of our activities, said the CEO, Pascal Houle, as part of the publication of the results. We will review the activities to ensure that next year the results meet the expectations of the board of directors and management.
The cooperative had disclosed a loss before patronage refunds and taxes of $18.7 million in its 2021 fiscal year ended October 31, compared to a surplus of $201 million in 2020.
Net loss was $10.3 million in 2021, compared to a surplus of $141 million in the prior year.
Olymel says employees affected by the closure of its plant will have the option of being transferred to its other facilities in the region.