Dr. Oetker has announced the closing of its leased pizza manufacturing plant in Grand Falls, N.B., Canada, at the end of May, 2018.
Dr. Oetker will also establish a USD4m Grand Falls Community Fund to assist with job retraining and economic development.
“We care deeply about the people on our Grand Falls team and we will sit down individually with them to discuss their own specific path forward,” said Dr. Oetker’s executive vice president Cécile Van Zandijcke. “That will be our immediate focus now.”
Dr. Oetker motivates the decision saying the retail food climate has become increasingly challenging in recent years, both in terms of price and cost, adding significant additional pressures in the manufacturing environment.
“This very difficult announcement does not reflect on the quality of work and dedication of our Grand Falls employees. There is nothing our Grand Falls employees could have done differently. Food manufacturers have been facing severe economic pressures over the last few years and today’s market has become ultra-competitive. In order for Dr. Oetker to continue operating efficiently within this challenging environment, we needed to restructure our Canadian manufacturing operation,” said Van Zandijcke.
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