MISSISSAUGA, ON, September 29, 2022 /PRNewswire/ – Maple Leaf Foods Inc. (“Maple Leaf Foods” or the “Company”) (TSX: MFI) confirmed today that it has completed construction of its new value-added poultry plant in state-of-the-art technology to London, Ontario, slightly ahead of schedule. Equipment testing has begun and new people are being hired to enable production to start on schedule in Q4 2022.
“I am incredibly proud of our team for achieving this important milestone ahead of schedule in a very challenging environment,” said Michael H. McCain, Chief executive officer. “As we move closer to commercial production, we know we are well on our way to realizing the benefits and returns of this $772 million strategic investment. We expect the plant to produce approximately $100 million annual incremental Adjusted EBITDA on a run rate basis once production is fully ramped up towards the end of 2023. This historic investment in one of the world’s largest and most technologically advanced poultry processing facilities in the world is another example of how Maple Leaf Foods is strategically positioned to serve growing markets, while remaining true to its sustainability commitments. »
Chicken continues to be the most consumed and fastest growing meat protein in the world. Canada, offering versatility, nutrition and a reduced environmental footprint. Demand is particularly high for chicken products raised without antibiotics and halal, categories for which Maple Leaf Foods has a strong collection of leading national brands, including Maple Leaf Prime® and Mina®. With a footprint of 660,000 square feet, the equivalent of more than 11 football pitches, combined with cutting-edge innovation and technology, the London Poultry plant provides Maple Leaf Foods with the flexibility and ability to meet growing demand.
“Our investment in leading-edge food safety, environmental and animal care technologies will allow us to efficiently deliver a premium blend of value-added poultry products to meet growing consumer demand, while by reinforcing from Canada food system and advancing our vision to be the world’s most sustainable protein company,” said Curtis Frank, President and Chief Operating Officer. “London Poultry is truly a next-generation facility that exemplifies Maple Leaf Foods’ approach to delivering shared value to all stakeholders.
A key part of planning through to start-up is building the operations team. Maple Leaf Foods expects to hire approximately 600 people by the end of 2022 and will employ approximately 1,600 people once the plant is operating at full capacity. As well as recruiting new team members, the company is also working with existing team members who wish to transition from former poultry plants as these former operations are transferred to London Poultry. Maple Leaf Foods recognizes the need to attract and retain great talent and has taken this into account in the design of the plant, incorporating many features to create a modern, inviting and inclusive environment. The next in-person Community Career Fair will take place on Saturday, October 29, 2022 of 09:00 – 1:00 p.m. at RBC Place – 300 York Street, London, Ontario N6B 1P8. Alternatively, interested candidates are also invited to view the offer and apply online at: https://www.mapleleaffoods.com/careers/job-search/?location=London&city=London
This release contains statements, made by representatives of the Company in connection with this release, that may contain forward-looking statements within the meaning of applicable securities laws. These statements are based on current expectations, estimates, forecasts and projections regarding the industries in which the Company operates, as well as the beliefs and assumptions made by the management of the Company. Such statements include, but are not limited to, statements regarding the New Poultry Plant and the Company’s strategies, plans, actions and expectations, including, without limitation, expectations regarding the technical capabilities of the New Poultry Plant. poultry, expected shareholder value creation, earnings, adjusted EBITDA, project costs, jobs generated, timing of plant closures, non-core construction activities and other expected benefits of the new poultry plant. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict.
These statements are based on and have been developed using a number of factors and assumptions, including but not limited to: timelines for completing non-essential construction activities and for remedying construction deficiencies on the factory site; exchange rates, availability and prices of raw materials, energy and supplies; the ability to successfully implement price increases; stability in the competitive environment; no future product recalls; the Company’s continued ability to access profitable capital when needed; and no unforeseen or unforeseen event that could materially alter the Company’s current plans. All of these assumptions have been derived from information currently available to the Company, including information obtained by the Company from third party sources. Although these assumptions were considered reasonable by the Company at the time of their preparation, they may prove to be incorrect in whole or in part. Furthermore, actual results may differ materially from those expressed, implied or anticipated in such forward-looking statements, which reflect the Company’s expectations only as of the date hereof. Readers are cautioned not to place undue reliance on forward-looking statements, as such statements are not guarantees of future performance.
Factors that could cause actual results or results to differ materially from the results expressed, implied or anticipated by the forward-looking statements include the risks associated with implementing and executing complex projects and plans, including : timeframes to complete remaining non-essential construction activities and to remedy construction defects at the plant site; the availability and price of labor and construction materials and the risk of cost overruns; risks posed by food contamination, pandemics and product recalls; risks associated with commodity prices and the Company’s inability to control commodity prices; risks associated with fluctuations in exchange rates; risks associated with changing consumer tastes, preferences and buying habits; and risks posed by competition; the risks associated with the poultry supply management system Canada and the availability of live chickens for processing; and the risks of attracting and retaining a sufficient workforce for the plant. Other factors that could cause actual results or results to differ materially from the results expressed, implied or anticipated by the forward-looking statements are discussed in greater detail in the Company’s filings with Canadian securities regulators, including in the section entitled “Risk Factors” in the Company’s management report for the year ended December 31, 2021. All of these documents are available on SEDAR at www.sedar.com.
Certain of the forward-looking statements may be considered financial outlook for purposes of applicable securities laws, including, but not limited to, statements regarding future adjusted EBITDA and project costs. This financial outlook is presented in order to provide measurable objectives which the Company aims to achieve and against which the Company can use to compare its results. This financial outlook may not be suitable for other purposes and readers should not assume that it will be achieved. See the Company’s most recent MD&A filed on SEDAR.
The Company does not intend to update any forward-looking statements (including financial outlook), whether written or oral, or as a result of new information, future events or otherwise, and the Company disclaims any obligation to do so, unless necessary. by the law.
About Maple Leaf Foods Inc.
Maple Leaf Foods is a carbon neutral company with a vision to be the world’s most sustainable protein company, responsibly producing food products under leading brands including Maple Leaf®, Maple Leaf Prime ®, Maple Leaf Natural Selections®, Schneiders®, Schneiders® Country Naturals®, Mina®, Greenfield Natural Meat Co.®, Lightlife® and Field Roast™. The company employs approximately 13,500 people and operates primarily in Canadathe United States and Asia. The Company has its registered office at Mississauga, ON and its shares trade on the Toronto Stock Exchange (MFI).
SOURCE Maple Leaf Foods Inc.