E.D. Smith remained a Canadian owned and controlled company (income trust) for less than a year after Flaherty's income trust tax, a tax which destroyed its value and restricted its access to capital, making it ripe for takeover by US TreeHouse Foods, which is exactly what happened.
Now we learn that 180 Canadians will lose their jobs as TreeHouse Foods shifts production from Winona Ontario to TreeHouse operations in Pennsylvania.
Seaforth Creamery Closure Will Put 180 Out of Work
Treehouse Foods is the parent company of E.D. Smith which owns the Seaforth plant. Spokesperson Ron Bottrell says the decision was based on economics and an aging facility and the operations will be moved to other plants that make like products.
There is a plant in Winona, Ontario, and one in northeast Pennsylvania. The closing would be the second of it’s Ontario plants to shut its doors within the last four years. The company’s Cambridge facility closed in July of 2009. At that time employees from that plant were moved to Seaforth.
Bottrell says there will be employee support programs set up in the coming months.
The Seaforth Creamery produces salad dressings and marinades.
Treehouse Foods Company Release:
OAK BROOK, Ill., Aug. 8, 2012 /PRNewswire