March 19, 2013

Saputo to close Canadian cheese production plant

Canadian dairy processor, Saputo, will shut down its cheese manufacturing plant in Warwick, Québec, Canada, although the decision is likely put about 100 jobs at risk.

Saputo noted that the move is aimed at improving operational efficiencies, and is part of the company's continual analysis of its overall activities

The Québec plant is scheduled to close in June 2014 and production will be shifted to other facilities in the province.

Saputo stated that some of the employees would be transferred to another plant within the Dairy Products Division (Canada) and the affected employees will be provided with severance and outplacement support.

Over the past one year, Saputo has been seeking to gain additional efficiencies and reduce costs while strengthening its market presence.

In November 2012, it announced that its facility in Winkler, Manitoba, Canada, will be closed in January 2014, which will result in 40 job losses.

Costs related to both the closures will be approximately US$6.86 million of taxes, which includes an after tax fixed assets write down of around US$3.92 million. In addition, Saputo plans to invest approximately US$35.30 million in new fixed assets in other Saputo facilities, primarily during the fiscal 2014.

Saputo is involved in the production, marketing and distribution of cheese, fluid milk, yoghurt, dairy ingredients and snack-cake products, which are sold in more than 50 countries across the globe.