Newspaper article The Canadian Press

Cheesemaker Saputo Closing Two Plants in Alberta and Two in the U.S

Newspaper article The Canadian Press

Cheesemaker Saputo Closing Two Plants in Alberta and Two in the U.S

Article excerpt

Cheesemaker Saputo closing four plants

--

MONTREAL - Cheesemaker Saputo is eagerly pursuing growth opportunities around the world while again downsizing North American operations by closing four plants -- two in Alberta and two in the United States -- and shifting production elsewhere in its operations.

The company said about 180 employees will be affected by the latest closures.

The plants are in Wetaskiwin and Glenwood, Alta., New London, Wisc., and Hancock, Md. The shutdowns will begin in May and be completed by December 2015.

"Over the recent years, Saputo has maintained efforts to pursue additional efficiencies and decrease costs while strengthening its market presence," the company said in a news release.

"The announced measures are part of the company's continual analysis of its overall activities."

Saputo said workers will be given severance and outplacement support and some will be offered the possibility of transferring to other Saputo locations.

Saputo said costs connected with the closures will total about $19.8 million after taxes. The moves are expected to save about $4.8 million a year.

The company also said it expects to spend $35 million on new fixed assets in other Saputo plants in connection with the decision, but save the same amount in upgrades that would have been required at the facilities to be closed.

It described the plants being shut as older, inefficient plants that could not be easily upgraded.

The closures mark the second year in a row that the Saputo has announced a spring downsizing of its Canadian operations.

Last March, its announced plans to close a manufacturing facility as of June 2014 in Warwick, Que., affecting 100 workers. That followed its decision several months earlier to close a facility in Winkler, Man., that was part of its $407-million acquisition of Dairyworld Foods in 2001.

Chief executive Lino Saputo Jr. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.