March 31, 2014 – Saputo will close
four of its facilities, two in Canada and two in the U.S., with the aim of
improving operational efficiency. The affected plants are in in Wetaskiwin and
Glenwood, Alta., New London, Wis., and Hancock, Md. The current production will
be integrated into other Saputo facilities, the company said in a press release.
March 31, 2014 – Saputo Inc. will close
four of its facilities, two in Canada and two in the U.S., with the aim of
improving operational efficiency. The affected plants are in in Wetaskiwin and
Glenwood, Alta., New London, Wis., and Hancock, Md. The current production will
be integrated into other Saputo facilities, the company said in a press release.
The first facility closure is
scheduled for May and the last closure will occur in December 2015. In all,
approximately 180 employees will be affected. These employees will be provided
with severance and outplacement support; and some will be offered the
possibility of transferring to other Saputo locations.
Over recent years, Saputo has maintained
efforts to pursue additional efficiencies and decrease costs while
strengthening its market presence. The announced measures are part of the company’s
continual analysis of its overall activities.
In relation to these rationalizations, the company intends to add approximately $35 million in new fixed assets in other
Saputo facilities and will avoid the same amount in capital expenditures that
would have been necessary to upgrade impacted facilities. Costs connected with
the closures will be approximately $19.8 million after taxes, which include an
after tax fixed assets write down of approximately $14.3 million. These costs
will be recorded in the fourth quarter of fiscal 2014. Annual savings after
taxes should be approximately $4.8 million and should commence in fiscal 2015.
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