Montreal-based dairy processing giant Saputo is to close three plants in its Canadian cheese division, located in Souris, Manitoba; Yorkton, Saskatchewan; and Oakville, Ontario.
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Saputo explained that the closings are part of the process of continual analysis of the company’s activities as a whole, and of the implementation of measures aimed at improving operational efficiency. After-tax costs connected with these rationalizations will be about C$3.8m, including a C$1.8m non cash effect related to the devaluation of fixed assets. The company expects annual after-tax savings of about C$4m.
Following these closings the Cheese Division (Canada) will have a total of 17 plants.
In a press release, the firm said that activities at the affected plants will be transferred to other facilities. In all, 143 employees are affected by this decision. Certain employees will be offered transfer possibilities to other plants operated by Saputo.
The plant in Souris, Manitoba, which employs 30 people, will close on 30 October, and all its production activity will be transferred to the plant in Winkler, Manitoba.
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By GlobalDataThe plant in Yorkton, Saskatchewan, which employs 21 people, will close on 17 January 2003, and its activities will be transferred to the plant in Saskatoon, Saskatchewan.
Activities of the plant in Oakville, Ontario, will be transferred in two stages to other facilities, one of these being the plant in Tavistock, Ontario. The first stage will take place in late March 2003 and will affect 55 employees. The second stage is scheduled for late September 2003, and 37 employees will be affected.
