March 28, 2014

Canada's Saputo to shut down four dairy plants

Saputo Inc., Canada's largest dairy producer, which recently won control of Australian dairy Warrnambool Cheese and Butter Factory Co will close four factories in Canada and the United States this year.

Saputo said it would shutter two facilities in Alberta and one each in the US states of Wisconsin and Maryland. The first facility is scheduled to close in May and the last closure in December, the Montreal-based company said. some of the employees will be laid off while others are offered a transfer to other locations, Saputo said.

Saputo, which brands include Neilson dairy products, Stella cheese and Vachon pastries, said costs connected with the closures would be about CAD19.8-million (US$18 million) after taxes, which includes an after-tax fixed assets write down of about CAD14.3-million (US$13 million).

Both these costs will be recorded in the fourth quarter. The company expects annual savings of about CAD4.8-million (US$4.4 million) in 2015.