By DOUG SCHMITZ Iowa Correspondent
INDIANAPOLIS – Maple Leaf Foods, Inc., recently announced it will be moving its U.S. plant protein volume to its Indianapolis facility. The firm is winding down production at its plants in Seattle, Wash., and Turners Falls, Mass., according to company officials. The firm is based in Ontario, Canada. “The decision followed a review of our plant protein manufacturing footprint,” officials told Farm World in a Sept. 29 joint statement. “With declining volumes leaving our manufacturing network substantially underutilized, consolidating production in Indianapolis will create a more efficient manufacturing network, improve capacity utilization, and reduce operational complexity.” In 2021, the company acquired the 118,000-square-foot food-processing plant in Indianapolis through its Greenleaf Foods subsidiary. The Indianapolis facility produces tempeh, a plant-based protein source, for Maple Leaf Foods’ Lightlife brand. As a result of the consolidation, the Indianapolis plant will become the company’s only U.S. production facility, officials said. The transition is expected to occur in phases over approximately 12 to 18 months, with targeted completion to be done near the end of 2027, officials said. “As production is consolidated, we expect to invest in our Indianapolis facility, and add team members to support the expanded scope of operations. The decision is intended to strengthen the long-term competitiveness, and sustainability of our plant protein business.” Officials added the consolidation into what will be named the Indianapolis Plant Protein Centre of Excellence is part of Maple Leaf Foods’ broader “Fuel for Growth” initiative, and its multi-year strategy to simplify its operations, improve the competitiveness of its manufacturing network, and continue to strengthen the structural profitability of the business. Curtis Frank, Maple Leaf Foods president and CEO, said in a Sept. 22 news release, over the past several years, the company has taken significant action to improve the performance of its plant protein business, “and have made meaningful progress.” He said, however, the plant protein category has changed significantly, and declining volumes have left the company’s manufacturing network substantially underutilized: “Maintaining three facilities at these utilization levels creates structural costs that are not sustainable over the long term. Headquartered in Mississauga, the company said the expected benefits, costs and capital requirements of the consolidation are included in Maple Leaf Foods’ previously disclosed 2030 financial outlook. Officials said production will continue at the Seattle and Turners Falls facilities during the transition period, with the phased approach intended to maintain business continuity, support customer service, and enable an orderly transfer of production to Indianapolis. “Our colleagues in Seattle and Turners Falls have made important contributions to our business, and have consistently demonstrated tremendous commitment to our customers, consumers and brands,” Frank said. “This decision does not change our commitment to the plant protein category,” he said. “In fact, we believe it strengthens the foundation of the business. Our recent relaunch of Yves Veggie Cuisine is complementary to this strategy, bringing a leading brand, and additional volume into our portfolio and helping us create greater scale, and improve the economics of our consolidated manufacturing footprint.” He said the company will work closely with affected team members throughout the transition, providing support, and considering opportunities at other Maple Leaf Foods facilities where feasible. “This decision is not a reflection of their performance, or the quality of their work,” he said. “We recognize how difficult this announcement is for them and their communities.” |