$660M Maple Leaf plant with 1,500 jobs latest food-sector boost for London area

A food industry giant plans to open a $660-million plant in London that will bring nearly 1,500 jobs to the city. Maple Leaf Foods will announce Tuesday it is opening a massive 60,000-square-metre plant on 40 hectares of land in the city, opening a poultry processing plant in 2020.

“We are absolutely thrilled to attract an investment of this magnitude. London is a strong hub now for food processing and the addition of Maple Leaf puts us in a different category,” said Kapil Lakhotia, chief executive of the London Economic Development Corp. that worked with Maple Leaf for three years to get this investment. London has more than 60 agrifood businesses employing about 7,000 workers, Lakhotia said. Maple Leaf bought the land from the city and construction will begin in the spring. The plant will start production in 2021 and hire 1,450 workers.

Maple Leaf was drawn to London by the availability of land, proximity to poultry farms, skilled workers and the logistics of the city’s access to highways 401 and 402. “The London site was perfect,” Lakhotia said.

The plant will be built at Highway 401 and Highbury Avenue, on Wilton Grove Road.

The Ontario government is contributing $34.5-million in incentives and the federal government $20-million.

“This will be one of the most technologically advanced poultry facilities in the world,” Lakhotia said. “You need constant investment to stay competitive.” Mayor Matt Brown cheered what he called the single largest foodsector investment in the city. “We should all be ecstatic. This is important to the local economy.” Ontario Premier Doug Ford is expected to be in London Tuesday as is the federal agriculture minister, joining other politicians and industry officials for the announcement.

“This is excellent news for the London area,” said Sylvain Charlebois, professor in food distribution and policy at Dalhousie University in Halifax.

“Food processing in Canada needs this investment, there has not been enough if it.”

In the last 10 years about 4,000 new processing plants have opened in the U.S. and over that same period, Canada has had about 10 openings, he said. “This is about being more efficient, and Maple Leaf will force the economy to come up with skilled personnel for these jobs. “London is the right place for this.”

The recent free trade deal between Canada, the U.S. and Mexico also opens up possibilities for London to supply food into the U.S, Charlebois said. “Because of the USMCA there is a much more open North American market from a chicken (production) perspective.” Maple Leaf is consolidating production in London from plants in St. Marys, Toronto and Brampton, closing the three older facilities. It is believed those workers will be offered work in London. London already boasts a growing food sector, with Dr. Oetker, the frozen pizza maker, the Nestle ice cream plant, Sikorski Sausage and Cargill, another chicken processor, all announcing plant expansions and new investment this year. Oetker announced it is investing $54.5 million to add a production line to the plant, increasing the workforce to 300 from 200. It makes more than 40 million pizzas a year.

Nestle announced a $51 million investment, adding about 200 positions.

Cargill, which employs more than 800, invested $22-million in its London facility. Sikorski, which makes smoked sausage and deli meats, invested $3.2 million adding 10 new positions. Ontario’s agri-food sector is worth more than $37 billion and supports more than 800,000 jobs across the province, the agriculture ministry says.

London is a strong hub now for food processing and the addition of Maple Leaf puts us in a different category.