Saputo Closes Canada Plant
Canada-based Saputo Inc. announced plans to close its cheese manufacturing facility in Warwick, Québec, Canada. The closure is planned for June 2014. Production will be integrated into other facilities in the province of Québec. In all, approximately 100 employees will be impacted. In some cases, employees will be offered the possibility of transferring to another plant within the dairy products division (Canada). Impacted employees will be provided with severance and outplacement support.
Over the last year, Saputo has maintained efforts to pursue additional efficiencies and decrease costs while strengthening its market presence.
The company intends to add approximately $36 million in new fixed assets in other Saputo facilities, mainly over the course of fiscal 2014. Costs connected with both measures will be approximately $7 million after taxes, which includes an after-tax, fixed-assets write down of approximately $4 million. These costs will be recorded in the fourth quarter of fiscal 2013. Annual savings after taxes should be approximately $6 million and should commence at the beginning of fiscal 2015.