As a cost-cutting measure in a “very competitive” domestic sugar market, Rogers Sugar plans to cut back its Montreal refinery’s workforce by 59 employees.
The Montreal plant, run by Rogers subsidiary Lantic, will cut the positions through “layoffs, early retirements and voluntary departures,” the company said Wednesday.
Canada’s sugar industry operates in an open market, Rogers said, “as opposed to most other countries where the market is protected.”
Lantic is one of two refiners in Eastern Canada, a market with “many regional distributors and processors,” Lantic CEO Ed Makin said in a release.
“This environment, combined with customer consolidation, is putting increased pressure on our margins.”
Lantic hired a “process improvement” consulting firm to review the Montreal plant’s cost structure and manufacturing processes.
With the results of the review in hand, Makin said, “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.”
Makin, who last month announced his plans to retire by the end of March 2015, said the changes “will help sustain the long-term future for our Montreal refinery, our employees and our customers.”
Rogers said it expects to book an additional $2 million in costs in its fourth quarter for consulting fees and severance.
Lantic, the company said, will continue to employ about 850 people during its “peak season” across Canada at its Montreal and Vancouver cane sugar refineries, its Taber, Alta. sugar beet processing plant, and its blending plant and distribution centre in Toronto. — AGCanada.com Network