Saputo Fond du Lac © Google Maps
Canadian dairy company Saputo has announced it will shut its cheese manufacturing facility in Fond du Lac, Wisconsin, to ‘improve operational efficiency’.
The closure is scheduled for May 2018 and current production will be integrated into the company’s newly constructed blue cheese facility in Almena, Wisconsin.
Approximately 126 employees will be impacted by the changes. Saputo said employees will be provided with severance and outplacement support; with some offered the possibility of transferring to other Saputo locations.
Costs connected with the closure will be approximately CAD 22 million ($17.3 million) after taxes. These costs will be recorded in the third quarter of fiscal 2018. Annual savings after taxes should commence in fiscal 2019.
In a statement the company said: “Over recent years, Saputo has maintained efforts to pursue additional efficiencies and decrease costs while strengthening its market presence. This decision is part of the company’s continual analysis of its overall activities.”
Last month Saputo expanded in Australia with the $1 billion acquisition of Murray Goulburn, followed by a deal for US goat’s cheese manufacturer Montchevre.
In the three months to September 30, Saputo posted a net income of CAD 185.2 million ($144.4 million), down 3.4% on the year before.
© FoodBev Media Ltd 2017