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Olymel to Close Iberville Processing Plant


May 5, 2011
By Canadian Newswire

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April 30,2011 – Olymel l.p. has announced that it will continue the restructuring of operations begun last year
at its Iberville poultry products further processing and pre-packaging
plant. The changes will result in the loss of 120 jobs.

April 30,2011 – Olymel l.p. has announced that it will continue the restructuring of operations begun last year
at its Iberville poultry products further processing and pre-packaging
plant. The changes will result in the loss of 120 jobs.

The
distribution centre adjacent to the Iberville plant where fifteen
people currently work will, however, continue operating. The Iberville
plant will cease operations on August 19.

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Since last year the Iberville plant has focused its operations on the
production of chicken tournedos and skewers. Most of the production
volume will be taken over by a nearby Olymel plant located in
St-Jean-sur-Richelieu. This redeployment will require renovations to
the latter facility entailing an investment of over half a million
dollars that is expected to create some 30 new jobs in addition to the
current staff of 85 employees at the St-Jean-sur-Richelieu plant. These
new jobs will be offered first to employees who were laid off from the
Iberville plant.

Réjean Nadeau, President and CEO of Olymel l.p. noted in a release that "since the
restructuring that began last year, market conditions have not improved
and current low production volumes for chicken tournedos and skewers no
longer justify continued operation of the Iberville plant. These
changes should generate significant economies of scale in our
operations. Renovation of our St-Jean-sur-Richelieu facility is
expected to create new jobs that will be offered first to laid-off
Iberville employees, and the company will provide all necessary
assistance through the Job Placement Committee it will set up."

The layoff notices go into effect in 16 weeks,
on August 19. Meanwhile, a Job Placement Committee will be established
to support laid-off workers in finding new employment or help them
relocate to other Olymel facilities.