Saputo to close 3 plants in Canada
Saputo Inc. announced it will close three of its plants in Quebec, Ontario and Atlantic Canada. In all, 230 workers will lose their jobs by the end of next year. The closings are designed to cut costs and improve efficiency of the company.
|The shares of Saputo SAP rose one percent on the Toronto Stock exchange on the news. Saputo is based in Montreal Quebec. A plant in Sydney Nova Scotia will close this June after being purchased in 2014. In August, another plant in Princeville, Quebec, will close — it was bought in 2015 and makes goat cheese. The last plant in Ottawa, with 126 employees, will close in December of next year. The Ottawa plant was just purchased from Nielsen in 2008. Production will be diverted to other Saputo plants. The company hopes to save about $9 million annually from the move by 2019. Over the next two years, Saputo plans to invest $32 million in other locations. The company expects it will cost $23 million to close the plants, including a $19 million writedown of fixed assets.|