Nestlé to close Chesterville plant

Nestl Canada will close its Nescaf 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 Nestl 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 Nestl 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."

Nestl 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. Nestl 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.