TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Heinz to sell Canadian plant slated to close, jobs saved

Thursday, Feb. 27, 2014, 12:27 p.m.
 

H.J. Heinz Co. reached a deal to sell a factory in Canada that the Pittsburgh company planned to close in restructuring North American operations.

Heinz said on Thursday that Highbury Canco Corp., a Toronto-based consortium of investors including the plant's manager, agreed to buy the Leamington, Ontario, plant and become a contract manufacturer for some Heinz products produced there. Terms of the deal were not disclosed.

When the deal closes, 250 workers would keep their jobs at the plant, Highbury Canco said in a statement. Heinz employs 740 people in Leamington, known as the tomato capital of Canada.

“The Leamington plant has an excellent workforce, and Ontario's farmers are amongst the best in the world,” said Pradeep Sood, a Highbury Canco representative. “We believe that our investment will be the cornerstone to providing Ontario's agricultural products around the world, not just in Canada.”

Investments in the plant could lead to growth, which would increase jobs, the company said.

“I want to congratulate Heinz and Canco for their decision to reinvest in the Leamington facility,” Eric Hoskins, Ontario's minister of economic development, trade and employment, said in a statement. “This is good news for workers, local farmers, non-food suppliers and distributors, and for the Leamington area.”

In November, Heinz said it would shutter the Leamington factory and plants in Idaho and South Carolina to improve the efficiency of its manufacturing operation.

Heinz spokesman Michael Mullen said the company is looking to sell the other two plants. He declined to explain how the deal would lead to cost savings for Heinz.

Heinz said Wednesday its cost-cutting review shifted to Europe. The company plans to close factories in Belgium and Germany, laying off about 350 workers.

Alex Nixon is a Trib Total Media staff writer.

Add Alex Nixon to your Google+ circles.

 

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Treasury’s clampdown on tax inversions takes bite out of share prices
  2. Michael Baker CEO Bergman outlines changes in Pittsburgh-based engineering company
  3. CMU researchers track devices that keep healthy lifestyles in reach
  4. Pa. among those states expecting increase in number of health exchange insurer participants
  5. Roundup: DEP fines Markwest $150K over flaring; Cadillac to ditch Detroit for trendy NYC address; more
  6. Sabotage by union admitted
  7. Citizens Financial IPO brings in $3B
  8. Power companies not on board with plans for polar vortex
  9. News out of Europe, Syria batter stocks
  10. Sears leaving Century III after 3 decades in West Mifflin
  11. Coal gathering opens with dour assessment, political vitriol
Subscribe today! Click here for our subscription offers.