Canadian dairy giant Saputo plans to close a cheese factory in the US state of Wisconsin only two weeks after completing a deal to buy struggling Australian cooperative Murray Goulburn.
Saputo said the closure of the plant in Fond du Lac is aimed at “improving its operational efficiency” and is slated for May 2018. Around 126 employees will lose their jobs, the company announced in a statement late yesterday (9 November).
Go deeper with GlobalData
Production will be switched to a newly constructed blue cheese facility in Almena in the same state.
Costs to close the site will run up to CAD22m (US$17.3m) after taxes – including an after tax fixed asset write-down of approximately CAD7m – and will be booked in the third quarter of fiscal 2018. It hopes to reap the cost savings in the 2019 financial year, and expects those to reach CAD7m in 2020.
Employees hit by the closure will be given severance and outplacement support and some will be offered the possibility of relocating to other sites.
See Also:
The owner of brands such as Dairyland, Nutrilait, Stella and Sungold booked revenues of CAD11.2bn in the year to 31 March. It recently reported first-half sales of CAD5.8bn.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
