Saputo to close Canadian cheese plant next June
October 13, 2005
by Eric Schroeder
MONTREAL — Saputo Inc. on Wednesday said it will close its cheese manufacturing plant in Harrowsmith, Ontario, effective June 28, 2006. The plant’s 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, a majority of whom will be given the possibility of transfer to company plants elsewhere.
In relation to that rationalization, the company intends to add approximately $4.5 million in new fixed assets in other facilities. Costs connected with the closing will be approximately $1.5 million, after tax. The company expects annual after tax savings of about $3.5 million.