Hexo closes Belleville plant in hopes of achieving positive cash flow, more than 200 employees affected

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HEXO Corp. HEXO HEXO will close its Belleville plant and transfer its activities to other sites to further streamline operations and capitalize on production efficiency.

“After a thorough review of site capabilities, we have identified this operational closure and transition as an opportunity to further optimize our network,” said HEXO COO acting, charlie bowman. “Our decision is designed to leverage other sites with available infrastructure and capabilities to improve production outputs while significantly reducing costs across our network. This is a critical next step for HEXO as we continue to progress towards achieving positive cash flow from operations. »

As part of the transition, all manufacturing machinery and equipment currently located at the HEXO Belleville plant will be transferred to other locations. A plan has been developed to facilitate this transition and ensure there is no impact on production or shipments. The transition is expected to be completed by the end of July 2022.

“I would like to thank our partners and employees in the Belleville community for their invaluable contributions to HEXO’s growth and success,” said HEXO President and CEO, Scott Cooper. “This was a very difficult decision, but it is a key part of executing our strategic plan, and one that we believe best positions HEXO for profitable growth.”

HEXO is working closely with employees to reduce the impact of this decision, including offering career counseling and other transition services. Approximately 230 employees will be affected by this announcement. the Truss Beverage Co. operations are unaffected by this transition and will continue to operate from the Belleville facility.

Photo: Courtesy of HEXO Corp

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