PROVINCE WELCOMES MAJOR MAPLE LEAF FOODS INVESTMENT

Released on July 7, 2005

Maple Leaf Foods announced a major expansion of its pork operations in Saskatoon today. "This investment decision by Maple Leaf Foods in Saskatchewan is a giant step forward in the further development of the province's meat processing industry," Premier Lorne Calvert said.

The Premier participated in Maple Leaf Foods' announcement of a new, approximately $110-million, primary pork processing facility for Saskatoon. The company will also invest up to $50 million in its value-added pork operations in the province.

"Maple Leaf Foods, and its subsidiary, Mitchell's Gourmet Foods, are major contributors to our growing agri-food sector," Calvert said. "This investment builds on the company's long and proud history in our province. By building this world-class facility in Saskatoon, the company is showing a significant commitment to Saskatchewan and to jobs for Saskatchewan people."

Maple Leaf's investment will support up to 1,400 existing jobs in its Saskatoon operations, and is expected to create up to 350 new jobs in the city, as well as other jobs in its value-added pork operations throughout the province. The new Saskatoon facility will process up to two million hogs a year when it is at full capacity.

"This investment in Saskatchewan reinforces our strategy of establishing a network of world-class meat processing operations to meet growing consumer demand domestically and around the world for premium quality, innovative pork products that are made in Canada," Maple Leaf Foods President and CEO Michael McCain said.

"This announcement is a very positive signal of the growth opportunities that exist in Saskatchewan for pork production and processing," Agriculture and Food Minister Mark Wartman added. "We are working very hard to expand our livestock and value-added industries to give strength and balance to our agriculture sector, and today's announcement is a significant milestone in that strategy."

The government will provide grants of up to $35 million to Maple Leaf, with $22.5 million targeted at the new slaughter and cut facility and $12.5 million directed at value-added manufacturing.

"Major investments like this by Maple Leaf Foods do not occur every day," Saskatoon Mayor Donald Atchison said. "And with the future expansion that is to come from the company, it means a positive atmosphere for all, not only in Saskatoon, but surrounding communities as well."

"The Maple Leaf expansion complements the government's meat processing strategy announced in June," Calvert said. "That strategy is designed to encourage more investment in Saskatchewan's meat processing industry through competitive programs and infrastructure.

The Maple Leaf expansion is helping secure the long-term future and viability of Saskatchewan's hog production and pork processing industries," the Premier concluded.

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For More Information, Contact:

Bob Ellis Industry and Resources Regina Phone: (306) 787-1691 Cell: (306) 539-6948