Olymel closing Québec City plant

Olymel is closing its Vanier plant in Québec City this spring.

In a press release, the meat packing and food processing company said it would offer a compensation and relocation program for the 47 employees affected by the May 10 closure.

As a result of the closure, production of the company's cretons, bologna, pepperoni and spaghetti sauce will be moved to its Blainville plant, north of Montréal. The company said moving these operations to Blainville would require a $2-million investment and would create 30 jobs.

"In all the scenarios considered, the costs of modernizing the Vanier plant would not have allowed us to achieve profitability," said Réjean Nadeau, President and CEO of Olymel, in a statement. "This decision will enable us to strengthen our production centres for the future, to invest in achieving even more efficiency, and even to create new jobs, as will be the case in Blainville."