Layoffs announced for Montreal manufacturer
September 12, 2014 By Manufacturing AUTOMATION
Sept. 12, 2014 – Rogers Sugar Inc. has announced it will reduce the hourly workforce at its Montreal refinery by 59 employees through a combination of layoffs, early retirements and voluntary departures. The Montreal refinery is operated by Lantic Inc., a wholly-owned subsidiary of the corporation.
“The Canadian sugar industry operates in an open market as opposed to most other countries where the market is protected. Lantic is one of two sugar refiners in Eastern Canada along with many regional distributors and processors. As such, the Canadian marketplace is very competitive. This environment, combined with customer consolidation, is putting increased pressure on our margins,” said Ed Makin, president and CEO of Lantic. “In order to remain competitive in this challenging environment, we need to improve production efficiencies. As a result, a process improvement consulting firm was hired to review the Montreal refinery cost structure and its manufacturing process. Following their analysis and a thorough review of our operations with our production team, we are now proceeding with a reorganization, which will have no impact on our commitment to supply quality products and to reliably service our customers.”
The corporation expects to incur approximately $2 million in additional administrative costs in the fourth quarter of fiscal 2014 for consulting fees and severance costs.
Lantic will continue to employ approximately 850 employees during the peak season across Canada, through its two cane sugar refineries, beet factory, blending facility and distribution centre.