Dairy giant Saputo has announced the closure of four plants, affecting 180 jobs.

Two of the sites are in Canada – in Wetaskiwin and Glenwood – and a further two in the US, in New London and Hancock.

Production will be shifted to other Saputo plants. Closures will start in May and end by December 2015.

The Canadian dairy giant said the closures were a bid toward “impoving its operational efficiency”.

“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,” the firm said.

The company will add approximately C$35m (US$31.5m) in new fixed assets in other facilities “and will avoid the same amount in capital expenditures that would have been necessary to upgrade impacted facilities”.

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Costs connected with the closures will be approximately C$19.8m after taxes, which include an after tax fixed assets write down of approximately C$14.3m. These costs will be recorded in the fourth quarter of fiscal 2014. Annual savings after taxes should be approximately C$4.8m and should start in fiscal 2015.

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