Nestlé to close Chesterville plant

Nestlé Canada will close its Nescafé coffee plant in Chesterville, Ont., next year, after nearly 90 years of operation.

It means the loss of 300 jobs in the village of 1,500 on the CP Rail line about 60 kilometres southeast of Ottawa.

Company officials say the facility requires $50 million in upgrades. Even though Nestlé has spent $70 million over the past 10 years, the plant is operating at 45 per cent capacity.

"We just can't justify this in this current environment," said Kathryn Rowan, vice-president of Nestlé Canada.

"I was totally devastated," said Mayor Alvin Runnalls, "because we know that this is our largest business in North Dundas. I was really shocked."

Nestlé said it's committed to helping its employees find other work, but workers will likely have to leave Chesterville to earn a paycheque.

Of the company's 11 facilities in Canada, the Chesterville plant was the only one to produce coffee products. Nestlé has no plans to move its coffee operation to another Canadian plant.

By this time next year, only the buildings will be left to remind people in Chesterville of the multi-national corporation's presence in their village.

Layoffs will be completed by June 2006.