Maple Leaf Foods announced today through its plantbased subsidiary Greenleaf Foods, the acquisition and planned build-out of a food processing plant in Indianapolis, for the production of Lightlife tempeh products. The company states that this is driven by growing demand, and that the new facility will employ approximately 115 people.
Initial production at the plant is targeted to begin in the first half of 2022. Phase 1 of the Project involves the acquisition of a 118,000 square foot plant in Indianapolis which is expected to close in early April, and the installation of tempeh production equipment with initial capacity of approximately 4.5 million kilograms. The acquisition is subject to typical closing conditions, including completion of due diligence.
Based on early pre-engineering for the build-out of the plant, the estimated cost of the Project, including the acquisition cost, is approximately US$100 million. If demand for tempeh continues as expected, the plant offers the flexibility for the Company to proceed with a second phase of the Project which could include doubling the capacity.
“Maple Leaf Foods has been purposeful in executing a multi-tiered strategy focused on capital efficiency. To date, we have found ways to leverage the capacity of our existing plant protein manufacturing assets, while successfully utilizing footprint in the rest of our network,” said Michael McCain, President and CEO. “At this juncture, given the high demand for our tempeh products, this Project offers us the ability to deliver incremental capacity in a cost-effective, timely manner in a location that has synergies with our long-term vision.”