Media Centre
2002/06/12

Hub Meat Packers Announces Business Realignment

Moncton, New Brunswick– Hub Meat Packers Ltd. today
announced that Larsen Packers Limited of Berwick, Nova Scotia, and Hub will be
realigning their operations to focus on their core businesses of primary pork
processing and production of value-added meat products. As a result, Hub Meat
Packers will exit the beef processing business effective August 2, 2002.


“Specialized plants offer the greatest potential for growth
in today’s highly competitive meat processing industry and we must adapt in
order to remain competitive,” said Karl Larsen, President of Hub Meat Packers
and Larsen Packers. “These changes will allow us to build a strong platform for
growth at both plants and continuously improve the products and services we
offer our customers.”


Under the new business structure, all primary hog
processing operations will be consolidated at the Larsen plant, while Hub Meat
Packers will focus on expanding its value-added secondary meat processing
capabilities. The changes are expected to result in a workforce reduction at
the Hub facility of between 150 to 200 people. All affected employees will be
compensated with severance packages in accordance with or exceeding government
regulations.


Hub is working in close conjunction with its major beef
customer, Co-op Atlantic to provide continuity for local beef producers, while
Co-op and producers determine the best long-term strategy to meet the
requirements of a strong regionally based beef industry in Atlantic Canada.


“This decision was difficult to reach, particularly due to
its impact on our employees. However these changes are essential in order for
us to build a strong meat processing business in Atlantic Canada and
potentially create new jobs in the future. I would like to acknowledge and
thank all of our employees for their support and contribution over the years.
They are a talented and dedicated team and we will make every effort to ease
their transition,” said Mr. Larsen.


Hub Meat Packers and Larsen Packers are subsidiaries of
Maple Leaf Foods Inc., Canada’s largest meat processing company. They produce
meat products under the brand names Sunrise, Harvest Gold, Gloucester,
Coachman, Larsen, Simons, Brandywyne, Trim Cut and Lite n Low.


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