Cheese maker Saputo announced cuts at three factories on Tuesday as part of a plan that will see it invest around $169 million to improve its facilities in the United States and Australia and accelerate its growth.
Posted yesterday at 6:34 p.m.
The Montreal-based company said a cutting and packaging facility in Tulare, Calif., will close in fiscal 2023, while operations at two Australian manufacturing plants will be streamlined.
Saputo estimated that the impact for US employees would be minimal as jobs will become available at other Tulare facilities. In addition, the limited number of workers who will be affected by layoffs in Australia will be entitled to severance pay and services to facilitate career transition.
The first phase of Saputo’s plan will focus on modernizing and expanding its cheese manufacturing plants in Wisconsin and California for two years, starting in the fourth quarter of fiscal 2022.
Annual savings from these initiatives are expected to grow gradually to approximately $112 million, or $83 million after tax, by the end of fiscal year 2025. After tax costs will be approximately $46 million, including $39 million in depreciation. non-cash fixed assets.
The company’s President and CEO, Lino Saputo, said the investment, which is part of a previously announced global strategic plan, would fuel organic growth, improve its product portfolio, modernize its processes and build its capacity.
“Today’s announcement is the first in a series of investments and consolidation activities that will increase our efficiency and productivity, which will improve our ability to meet the changing needs of our customers and consumers” , he said in a statement.