Canadian dairy products company Saputo has announced the closure of its cheese manufacturing plant in Harrowsmith, Ontario, Canada.

The plant will cease operations on 28 June 2006, and its activities will be integrated into those of other Saputo facilities.

“This decision is part of the company’s continual analysis of its overall activities and the implementation of measures aimed at improving its operational efficiency,” Saputo said.

In all, 89 employees will be affected, the majority of whom will be given the possibility of transferring to company plants elsewhere.

In relation to the closure, the company said it intends to add approximately C$4.5m (US$3.8m) in new fixed assets in other facilities. Costs connected with the closure will be approximately $1.5m, after tax. The company expects annual after tax savings of about $3.5m.