Saputo Closes a U.S. Cheese Manufacturing Plant
From: Food in Canada
Montreal – Saputo Inc. is closing a cheese manufacturing facility in the U.S.
The company announced in a statement that closing the Fond du Lac, Wis.-based facility is a move to “improve [the company’s] operational efficiency.”
The facility’s production will be “integrated” into Saputo’s other U.S. facility, a blue cheese manufacturing plant in Almena, Wis.
Saputo adds that 126 employees will be affected. Some will receive “severance and outplacement support; and some will be offered the possibility of transferring to other Saputo locations.”
The costs of the closure will be approximately $22 million after taxes, “which include an after tax fixed assets write-down of approximately $7 million.”
Saputo adds that “these costs will be recorded in the third quarter of fiscal 2018. Annual savings after taxes should commence in fiscal 2019 and gradually increase over the next two fiscal years, reaching approximately $7 million in fiscal 2020.”