Saputo Novia Scotia plant
Saputo Inc. plans to shutter its plants in Sydney, Nova Scotia; Princeville, Quebec; and Ottawa, Ont.

MONTREAL — Saputo Inc. said it will close three of its plants in Canada as part of ongoing efforts to improve operational efficiency. The company will shutter its Sydney, N.S., plant in June 2016, its Princeville, Que., plant in August 2016, and its Ottawa plant in December 2017. Production will be integrated into other Saputo plants. Approximately 230 employees will be affected. They have been offered severance and outplacement support with opportunities to transfer to other locations.

As a result of the plant closings, Saputo expects to add approximately $32 million in new fixed assets in other Saputo plants over the next two fiscal years as part of normal capital expenditure planning. The company expects to incur costs related to the closings of approximately $23 million after taxes, including an after-tax fixed assets write-down of approximately $19 million, which will be recorded in the fourth quarter of fiscal 2016. Annual savings after taxes are expected to begin in fiscal 2017 and increase over the next two fiscal years to reach approximately $7 million in fiscal 2019.

Headquartered in Montreal, Saputo produces, markets and distributes a range of dairy products, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients. Brands sold in the United States include Frigo Cheese Heads, Stella, Black Creek and Gardenia.