Maple Leaf Foods has announced they will be closing their Kitchener operations in two stages.

The distribution centre will close its doors in 2013, and the plant will follow in late 2014. In all, the company is eliminating 1,200 jobs in Kitchener.

Maple Leafs' announcement on Wednesday is part of a $560 million plan to modernize and concentrate production at its meat processing facilities over the next three years.

Schneider Employees Association President Dennis Lesperance issued a statement saying they had remained hopeful Maple Leaf would continue their local operations.

"We are all enormously disappointed that Maple Leaf has decided not to re-invest in this proud community and our loyal workforce. We had expected and deserved better news."

Kitchener Mayor Carl Zehr released a statement shortly after the announcement, extending his regrets to those affected by the job losses.

"While this is not solely a local issue as Maple Leaf Foods will be closing many other plants across the country, this is most definitely a tough day for Kitchener and Waterloo Region."

Zehr says he hopes Maple Leaf plans further investment in the region.

"My hope is that Maple Leaf Foods will remember its long history in our community and consider a legacy investment of some kind."

Cambridge Mayor Doug Craig also expressed disappointment over the announcement.

"The City of Cambridge and regional partners worked very hard to provide a business case for an alternative site for the new food processing facility that will go forward for Maple Leaf. Cambridge staff put together a comprehensive proposal that demonstrated a strong business case with a view to retaining the firm within the region,"

Kitchener-Waterloo MP Peter Braid tweeted his support for those losing their jobs.

"I express my sympathy and support to the employees and families affected by the Maple Leaf announcement. I know our community will prevail."

In total six plants across the country will shut down. Three distribution centres including one in Burlington will also close its doors.

The moves will eliminate close to 2,500 jobs nationwide.

Maple Leaf says they will construct a brand new state-of-the-art $395 million facility in Hamilton.

The company says the move will increase company margins from 9.5% in 2012 to 12.5% in 2015. When the modernized plants are completed in 2014, Maple Leaf plans to add 1,150 jobs.

The Schneider name has deep roots in Waterloo Region, going all the way back to when Kitchener was known as Berlin.

Schneider Foods was founded by J.M. Schneider back in 1890.

 

Family-run for more than a century, the company became a pillar of the local economy and community.

 

By the 1950s, Schneiders produced more than 150 different products including more than 70 million wieners a year.

 

Maple Leaf first tried to take over in 1997, but the family went with a bid from Smithfield Foods, a U.S. based meat packing giant that took over most of the company in the late nineties.

 

In 2004, Smithfield sold Schneiders outright to Maple Leaf.