George Weston Limited

Mar 04, 2005, 00:00 ET from George Weston Limited

    TORONTO, March 4 /PRNewswire-FirstCall/ - George Weston Limited
 ("Weston") announced today that its wholly owned subsidiary Weston Foods,
 Inc., in its continuing review of cost reduction and other strategic
 opportunities as discussed in our recent fourth quarter, 2004 preliminary
 report to shareholders, plans to restructure its United States Interbake
 biscuit operations. The plan will result in the closure of two biscuit
 facilities located in Elizabeth, New Jersey and Richmond, Virginia over the
 next twelve to eighteen months. Employment at both facilities will be phased
 down as the majority of the production is relocated to a new facility in
 Virginia and an existing Interbake facility already operating in South Dakota.
 Once completed, this initiative is anticipated to result in lowering annual
 manufacturing costs and strengthening Weston's competitive position within its
 biscuit operations in the United States.
     As a result of this restructuring, Weston expects to recognize certain
 one-time exit and start-up costs of approximately $50 million over the next
 twelve to eighteen months including employee related severance and benefit
 costs, production equipment relocations, training and other facility start-up
 related costs. In addition, Weston expects to recognize accelerated
 depreciation on assets currently held in use of approximately $25 million over
 the next twelve to eighteen months.
     George Weston Limited, is a Canadian public company founded in 1882, and
 is one of North America's leading food processing and distribution companies.

SOURCE George Weston Limited