Some of the changes will include plant closures, new investments and increased prices on goods. According to reports, this news comes in response to the climbing price of wheat, flour and deli meat, the rise of the loonie, the aftermath of the listeria outbreak, rising energy and shipping costs, as well as increased competition with U.S. suppliers. The CP reports the company will spend $755 million on restructuring, which begins this year and may continue into 2013. The cost-reduction efforts are projected to bolster profit margins by 75 per cent over the next five years.
“It is the largest cost reduction effort in the history of Maple Leaf, ever,” said Maple Leaf Foods president and CEO, Michael McCain during a recent conference call with investors, as reported by CP. “Its purpose is to significantly reduce costs and improve productivity to bring our plant structure on par with large U.S.-scale processors.”
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