Canadian food group Maple Leaf Foods has decided to locate a new distribution centre that will serve Ontario in the town of Puslinch.
Construction of the 282,000 sq ft site is expected to begin in the first half of next year.
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The site will house ambient, refrigerated and frozen products. It will be built and owned by a third-party investor and leased back to Maple Leaf, which has selected DB Schenker to run the centre.
“This is another important step in the implementation of our value creation plan, details of which were announced in October 2011,” Maple Leaf president and CEO Michael McCain said. “This new facility will simplify our distribution network and significantly increase our supply chain efficiencies.”
Maple Leaf is revamping its production and distribution network across Canada. Four other distribution sites are being consolidated into two – the new centre to be built in Puslinch and an existing hub in Saskatoon. Distribution centres in the Ontario cities of Burlington and Kitchener and further east in Moncton in New Brunswick are to close by 2014. Another site in Coquitlam in British Columbia will also close.
The company hopes the value creation plan, which will also see a new meat site opened, three more expanded but six close, will boost profits. A new bakery is also being built in Ontario, while other bakery sites have been closed.
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