Saputo to close Wisconsin cheese plant
The Canadian dairy company said the closure is due to measures aimed at improving its operational efficiency. The closure is scheduled in May 2018.
Current production at the plant will be integrated into the company's newly-constructed blue cheese facility in Almena, Wisconsin.
Annual savings
Saputo said employees will be provided with severance and outplacement support, and some will be offered the possibility of transferring to other Saputo locations.
Costs connected with the closure will be approximately C$22m (US$17.2m) after taxes, which include an after tax fixed assets write-down of approximately C$7m (US$5.5m).
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 C$7m in fiscal 2020.
Saputo recently announced a Q2 net earnings fall of 3.4%, as well as the acquisitions of Wisconsin cheese producer Montchevre, and Australian company Murray Goulburn.
