The H. J. Heinz Company is a Multinational food processing company, famous for its ‘57 Varieties’ slogan, and its Ketchup. Berkshire Hathaway and 3G Capital purchased Heinz for $23 Billion on February 14, 2013, since then the company has undergone many reforms within its organizational structure and its industries.
The new owners of Heinz have decided on closing down the Leamington, Ontario plant in June 2014, costing 740 employees their jobs as a result of the extensive review of its supply chain footprint, capabilities and capacity utilization which didn’t seem very promising to the new owners.
Heinz currently acts as the largest employer in Leamington and is one of the biggest taxpayers in the municipality, I believe that unemployment will not be the only factor that will affect the economy but also the mere fact that the local government will be loosing immense tax revenue as well as all the other businesses which currently trade with Heinz within the municipality. The very fact that most businesses within the community such as the farmers, stores, greenhouses, trucking companies, and many more, rely so heavily on Heinz Lemington, the closing down of the Heinz plant will most likely cripple Leamington’s economy.
Sources:
http://www.cbc.ca/news/canada/windsor/heinz-closes-leamington-plant-740-people-out-of-work-1.2426608
http://www.heinz.com
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