Maple Leaf Foods Launches Formal Process to Sell its Burlington, Ontario Primary Pork Processing

Source: Maple Leaf Foods

via CNW

TORONTO, July 22, 2008 /CNW/ - Maple Leaf Foods (MFI: TSX) today announced that

it has begun the formal process of selling its Ontario pork processing

business located in Burlington, Ontario. The process will entail a

solicitation of interest from potential purchasers, commencing immediately.

The Company anticipates that the sale process will be completed by the end of

2008.

"Our Burlington, Ontario business is well established, with long-standing

customer relationships, a skilled and stable workforce and an excellent mix of

value-added business," said Michael Vels, Chief Financial Officer of Maple

Leaf Foods. "It operates one of the more efficient pork processing plants in

North America, strategically located close to high density markets. Our

investments in the plant and our people have resulted in a profitable business

that represents an excellent investment in the global pork processing

industry."

The 365,000 square foot Burlington facility has a processing capacity of

up to 50,000 hogs per week, is located in close proximity to major domestic

and U.S. markets, transportation routes and a skilled labour pool, and is

licensed to export its pork products to nearly 50 countries worldwide. Maple

Leaf has invested significant capital in this location over the past decade to

develop a very extensive value-added business serving well-established

domestic and international customers.

The decision to sell this business results from a re-focusing of Maple

Leaf's protein operations towards prepared meats, meals and bakery, involving

divestiture or exit of several of its primary processing and agriculturally

oriented businesses.

Maple Leaf Foods Inc. is a leading Canadian food processing company

committed to delivering quality food products to consumers around the world.

Headquartered in Toronto, Canada, the Company employs approximately 23,000

people at its operations across Canada and in the United States, Europe and

Asia. The Company had sales of $5.2 billion in 2007.

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Maple Leaf Consumer Foods

Burlington Pork Processing Facility

Facility Overview

- A highly profitable operation, with a committed and skilled work

force, and a very extensive value-added business serving well-

established domestic and international customers.

- The 365,000 square foot pork processing facility is the largest in

Ontario (third largest in Canada), and has a processing capacity of

up to 50,000 hogs per week.

- The plant is strategically located on a 15-acre parcel of land in a

large industrial park in Burlington, Ontario, within close proximity

to domestic and U.S. markets, transportation routes and a deep labour

pool.

- The facility is federally inspected by the Canadian Food Inspection

Agency and is licensed to export its products to nearly 50 countries

worldwide, including the United States, Japan, China and Russia.

Key Features

- A highly advantageous location being in close proximity to densely

populated markets and major transportation links - it has immediate

access to major highways and has a market of 75 million people living

within an eight hour drive of the plant.

- A highly skilled, engaged and dedicated workforce of 1,200 employees,

the majority of whom live within 15 kilometers of the facility.

- The plant is profitable and highly efficient, approaching par in

operating efficiencies when compared to the top eight U.S. facilities

(as determined by Agrimetrics).

- Currently processing an average of 42,000 hogs per week, Burlington

is a high throughput facility, with the capacity and resources to

process up to 50,000 hogs per week, providing excellent flexibility

to optimize returns. Slaughter volume was 2.2M hogs in 2007 and

volumes are expected to be consistent with this level in 2008.

- Significant capital has been invested in the best available

technology and practices in all areas of the plant since it was

purchased in 1991, continuously improving the effectiveness and

efficiency of the processing operations, including enhancements to

the barn, cutting room, chilled and freezer capacity, refrigeration

and security systems.

- Burlington has an exemplary compliance record in environmental, food

safety and health and safety performance.

For further information: Michael Vels, Chief Financial Officer, Maple

Leaf Foods Inc., (416) 926-2048

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