Canadian pork and poultry producer Olymel is expanding its La Fernandière plant in Trois-Rivières, Quebec, with a C$142m ($103.7m) investment.

Construction to extend the site is expected to begin in the coming days, with the facility projected to be operational by spring 2026, the company said in a statement yesterday (10 June).

However, Olymel also simultaneously announced the planned closure of two other local facilities - its Anjou factory employing 140 people and the Cap-de-la-Madeleine plant with 150 staff.

Olymel said the closures are aimed at “optimising” operations and “capturing the full benefit" of the expansion at La Fernandière.

The Saint-Hyacinthe-headquartered company added that the affected employees will be offered roles at other nearby locations, particularly at the upgraded Trois-Rivières facility.

Olymel hopes to achieve “several objectives” through its expanded facility, located about 12km from the Cap-de-la-Madeleine plant, and anticipates “significant gains” during its first year of operation.

“The modernisation of operations will result in more consistent production to better meet the needs of our customers here and abroad,” the company added.

Currently focused on sausage production, the La Fernandière plant extension will broaden its output to encompass a more diverse portfolio of pork and poultry products.

As part of the upgrade, the site will be converted into a fully integrated operation, enabling processing and packaging to take place under one roof.

Without disclosing the specifics, Olymel said the expansion will “considerably increase” its production capacity.

The project will feature technologies such as an industrial battery system and autonomous operations for slicing, packaging, boxing and palletising.

Yanick Gervais, CEO of Olymel said: “Having this state-of-the-art plant will create new possibilities for expansion and significantly improve our efficiency, which is central to our company's performance.”

The expansion is expected to generate approximately 50 direct jobs, increasing the total workforce to 400.

Last April, Olymel announced the closure of its site in Saint-Jean-sur-Richelieu amid falling production volumes.

And in 2023, the company said it would close another site, its fifth in ten months, including the poultry processing plant in Paris, Ontario.

"Olymel invests in Canada plant expansion but closes two others" was originally created and published by Just Food, a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.