The McCain Foods Borden Carleton facility in winter
McCain Foods Canada is closing its Borden-Carleton, Prince Edward Island french fry facility.

The announcement was made in a news release Thursday morning.

The release blames a shift in the demand for french fries from North America to other regions, increased efficiency at other plants and a continuous strong Canadian dollar for the closure.

McCain Foods says production at the Borden-Carleton plant declined by two-thirds over the last decade, making it the company's smallest and least utilized facility in North America.

The plant will close as of Oct. 31, affecting 121 people.

The company says it will offer early retirement benefits, severance packages "that exceed regulatory requirements" and will offer retraining options.

"Closing a plant is one of the toughest decisions we ever face,” said McCain Foods Regional President of the Americas Frank van Schaayk in the release.

"We deeply regret the personal impact the closure will have on our P.E.I. employees and we are committed to providing support and resources to those affected.”

Van Schaayk says the company will work with the provincial government and spend $2 million to create new jobs for the affected employees and to help the wider community.