McCain Foods closing Borden-Carleton french fry plant

Facility employs 121 people

Published on August 7, 2014

McCain Foods has announced that it is closing its french fry plant in Borden-Carletown where 121 people are employed.

The plant will close Oct. 31.

The company announced the closure in a news release sent out this morning, citing as reasons for shutting down the shift in the demand for french fries from North America to other regions, the strong Canadian dollar and increased efficiency at other facilities.

"Production at the P.E.I. plant has declined by two-thirds over the last decade and the plant is now the smallest and least utilized facility in McCain’s North American network," states the news release.

“Closing a plant is one of the toughest decisions we ever face,” said Frank van Schaayk, president-Americas for McCain Foods. “We deeply regret the personal impact the closure will have on our P.E.I. employees and we are committed to providing support and resources to those affected.”

The company is offering affected employees early retirement benefits, severance packages that exceed regulatory requirements as well as retraining options.

It is also contributing $2 million to the provincial government to help the community deal with the loss of a major employer.

“The closure of a facility like this can have real impacts on the local economy and we will contribute up to $2 million and work with the provincial government to identify economic development initiatives to create sustainable alternate employment for our affected employees and the Borden-Carleton community,” said van Schaayk.

McCain Foods (Canada) is a Canadian division of McCain Foods Limited, an international leader in the frozen food industry, employing 18,000 people and operating 48 production facilities around the globe.

More to come