Saputo Inc., Montreal, said it plans by October 31, 2010 to close its Brampton, Ont., dairy, which processes milk and cream products. Officials said they intend to integrate Brampton operations with other Ontario facilities.

In conjunction, Saputo said it will consolidate all distribution activities in the greater Toronto area into one distribution center in Vaughan, Ont. Officials said these changes will be implemented gradually and should be completed at the end of September 2010.

Saputo said both decisions will affect approximately 190 employees and that about 120 employees will be offered an opportunity relocate within the company's Canadian Dairy Products Division.

"These decisions are part of the company's continual analysis of its overall activities and the implementation of measures aimed at improving its operational efficiency," Saputo said.

Costs connected with this announcement will be approximately $4.6 million, after tax, which includes a fixed assets write-down of approximately $2 million, after tax. Saputo expects annual after tax savings of approximately $6.5 million.