Canadian Pizza Magazine

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Saputo annouces Germany plant closure


February 26, 2013
By Marketwire

Feb. 26, 2013, Montreal – Saputo Inc. announced yesterday the closure of
its cheese manufacturing plant in Heiden, Germany, and, in conformity
with the legislative requirements in the United Kingdom, enters into a
30-day consultation period for the proposed closure of its facility in
Newcastle Emlyn, Wales, U.K

Feb. 26, 2013, Montreal – Saputo Inc. announced yesterday the closure of its cheese manufacturing plant in Heiden, Germany, and, in conformity with the legislative requirements in the United Kingdom, enters into a 30-day consultation period for the proposed closure of its facility in Newcastle Emlyn, Wales, U.K. The two plants were acquired in 2006 and 2007 respectively. The Germany plant specializes in Italian specialty cheeses for the retail market segment, whereas the United Kingdom facility mainly produces mozzarella for the food service market segment.

Since acquiring the businesses, Saputo says it has aimed to penetrate the European market and get a better understanding of its realities and dynamics, according to a press release. The past few years have been a learning and challenging experience. The press release stated that the Saputo European business does not have sufficient critical mass to be profitable and the company does not see short to mid-term opportunities to ensure such profitability. Saputo has therefore decided to close its Germany plant and proposes the closure of its United Kingdom facility, subject to the consultation period, to further concentrate efforts and resources in its current platforms and other markets.

In all, approximately 140 employees will be affected. Where redundancies are confirmed, impacted employees will be provided fair severance and assistance to find reemployment.

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