Saputo, the Canada-based dairy giant, is to close two of its production facilities as part of “continual” moves to increase efficiency and reduce costs.
The company said two of its plants in Canada would shut in moves “aimed at improving its operational efficiency and right-sizing both its manufacturing footprint and sales force” in the country.
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Saputo will close a factory in Trenton in Ontario in September. A plant in Saint John in the province of New Brunswick will shut in January next year. The sites’ production will be “integrated” into Saputo’s other facilities in Canada.
Around 280 staff will be affected by the closures. Saputo said some of the employees “will be offered the possibility of moving to the company’s other facilities housed in its Canadian dairy business.
“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,” Saputo said.
The announcement of the closures came alongside the publication of Saputo’s third-quarter financial results.
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By GlobalDataRevenues reached CAD3.89bn (US$2.92bn), up from the CAD3.58bn generated in the corresponding quarter a year earlier. Saputo’s third-quarter net earnings were CAD197.8m, down from the CAD342m booked in the third quarter of the company’s previous financial year, when it booked a CAD167.8m gain on the disposal of assets.
