Rogers Sugar Inc.
TSX : RSI

Rogers Sugar Inc.

September 10, 2014 18:07 ET

Rogers Sugar Inc. Announces Productivity Improvement Through Workforce Reduction at Lantic Inc.'s Montreal Refinery

MONTRÉAL, QUÉBEC--(Marketwired - Sept. 10, 2014) - Rogers Sugar Inc. (the "Corporation") (TSX:RSI) announces today it will reduce the hourly workforce at its Montreal refinery by 59 employees through a combination of layoffs, early retirements and voluntary departures. The Montreal refinery is operated by Lantic Inc. ("Lantic"), a wholly-owned subsidiary of the Corporation.

"The Canadian sugar industry operates in an open market as opposed to most other countries where the market is protected. Lantic is one of two sugar refiners in Eastern Canada along with many regional distributors and processors. As such, the Canadian marketplace is very competitive. This environment, combined with customer consolidation, is putting increased pressure on our margins." said Mr. Ed Makin, President and CEO of Lantic. "In order to remain competitive in this challenging environment, we need to improve production efficiencies. As a result, a process improvement consulting firm was hired to review the Montreal refinery cost structure and its manufacturing process. Following their analysis and a thorough review of our operations with our production team, we are now proceeding with a reorganization which will have no impact on our commitment to supply quality products and to reliably service our customers. These necessary changes will help sustain the long term future for our Montreal refinery, our employees and our customers. Through this difficult time, we are working to ensure all employees are treated with respect and given appropriate support. With this in mind, various employee programs were put in place to provide assistance to all affected employees."

Further to this announcement, the Corporation expects to incur approximately $2.0 million in additional administrative costs in the fourth quarter of fiscal 2014 for consulting fees and severance costs.

Lantic will continue to employ approximately 850 employees during the peak season across Canada, through its two cane sugar refineries, beet factory, blending facility and distribution centre.

About Rogers Sugar Inc.

The Corporation is a corporation established under the laws of Canada. The Corporation holds all of the common shares of Lantic Inc. Lantic Inc. operates cane sugar refineries in Montreal, Quebec and Vancouver, British Columbia, as well as the only Canadian sugar beet processing facility in Taber, Alberta. Lantic Inc.'s sugar products are marketed under the "Lantic" trademark in Eastern Canada, and the "Rogers" trademark in Western Canada and include granulated, icing, cube, yellow and brown sugars, liquid sugars and specialty syrups.

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