Dr. Oetker closing New Brunswick pizza plant

Dr. Oetker announced
Tuesday it would be closing its leased pizza manufacturing plant in Grand Falls, N.B. at the end of May.

In a press release announcing the closure, the maker of frozen pizza brands, dessert brands and dry baking mixes for both retail and food service, said employees would receive severance packages that exceeded "the statutory requirements in addition to employment counseling, resume support and career planning assistance."

In addition to establishing a $4-million community fund to help with job retraining, the company said it would also continue medical and dental benefits until the end of the year.

READ: Dr. Oetker to open production facility in London, Ont.

"This very difficult announcement does not reflect on the quality of work and dedication of our Grand Falls employees... Food manufacturers have been facing severe economic pressures over the last few years and today's market has become ultra-competitive,"said Dr. Oetker's executive vice-president Cécile Van Zandijcke.

"In order for Dr. Oetker to continue operating efficiently within this challenging environment, we needed to restructure our Canadian Manufacturing Operation," he added.

Approximately 70% of the manufacturing handled at the Grand Falls location will transition to the company's production facility in London, Ont., while the remaining 30% of production will move to its Lodi, New Jersey plant.