Dr. Oetker's closure of New Brunswick pizza plant 'a slap in the face'

Dr. Oetker stunned the Grand Falls area on Tuesday with news it will close its pizza-manufacturing plant and shift most of the work to Ontario.

Mayor Marcel Deschnessaid heonly learned Tuesday morning of the planned closure,which will put 180 people out of work.

"It's like a slap in the face," he said.

Dr.Oetkerannounced it will close the plant in Saint-Andr, just outside Grand Falls, at the end of May but promised severance packages and a $4 million community fund to help with retraining.

Most moves to London, Ont.

About 70 per cent of Dr. Oetker'sproduction at Grand Falls will be moved to the company plant in London, Ont., andthe other 30 per cent will move to its plant inLodi,N.J.

"Severe economic pressures" and an "ultra-competitive" market haveforced therestructuring,executive vice-presidentCcileVanZandijckesaid in the statement.

Deschnessaid the closure is devastating to his community.

"It reallycame as a surprise to everyone," he told CBC News.Deschnessaid the town of about 5,300 and council werewere kept in the dark about the company's plans.

"In a small community 180 jobs is really a blow," saidDeschnes.

$3 billion in sales worldwide

The company, established in 1891 in Germany, only took over the northwestern New Brunswick plant fromMcCainFoodsin August 2014.

"When the pizza plant came, when they put people to work, it was a dream come true for a small community," Deschnes said.

"Things were going well yesterday, but not today."

Inhis statement, the company said the retail food climate has become "increasingly challenging" in recent years, both in terms of price and cost.

Dr. Oetker had worldwide sales of $3 billion in 2016, according to the statement.

• McCain sells frozen pizza business to Dr. Oetker

Company representatives at the plant would not comment Tuesday on the closure, saying they had to spend the day with employees.

"This very difficult announcement does not reflect on the quality of work and dedication of our Grand Falls employees,"VanZandijckesaid.

"There is nothing the Grand Falls employees could have done differently."

Community fund

Officials could not immediately provide information about the wages of the 180 employees or whether they workfull time or part time.

Employees will receive a severance package that "exceeds the statutory requirements," the company said, as well asemployment counselling, resum support and career-planning help.

Dr.Oetkerwill also continue to provide group health and dental benefits until Dec. 31, according to the statement.

"We care deeply about the the people on our Grand Falls team and we will sit down individually with them to discuss their own specific path forward," said Van Zandijcke.