Dr. Oetker is stepping up production at its London facility as it closes the doors to its manufacturing plant in New Brunswick.
The German frozen pizza maker announced plans Tuesday to shutter its plant in Grand Falls at the end of May. It will then shift 70% of that plant's production its London facility near Veterans Memorial Pkwy. and Hwy. 401. The remaining 30% of production will move to an existing plant in New Jersey.
It is not clear whether the move will lead to more jobs at the London facility.
Dr. Oetker built the facility in London in 2014, while it only leased the plant in Grand Falls.
Company officials said the decision to move out of New Brunswick is due to increased challenges in the retail food sector.
"This very difficult announcement does not reflect on the quality of work and dedication of our Grand Falls employees. There is nothing our Grand Falls employees could have done differently," said Dr. Oetker's Executive Vice President Cécile Van Zandijcke. "Food manufacturers have been facing severe economic pressures over the last few years and today's market has become ultra-competitive. In order for Dr. Oetker to continue operating efficiently within this challenging environment, we needed to restructure our Canadian Manufacturing Operation."
A $4-million fund is being established to assist the Grand Falls employees with job retraining.