(Montreal) Dairy giant Saputo on Thursday announced changes to its U.S. operations, saying it would permanently close three facilities, build a new packaging plant and expand its string cheese operations.
The Montreal-based company explained that the goal of the capital investments and consolidation was to rationalize its manufacturing footprint in the United States.
Saputo will spend $240 million on a new cutting and packaging plant in Franklin, Wisconsin, which is expected to be fully operational by the end of 2025 and create 600 jobs. It will also invest $75 million to expand its string cheese business on the US West Coast.
Once these facilities are operational, the company will close its factories in Big Stone, South Dakota, Green Bay, Wisconsin and South Gate, California.
About 720 employees will be affected by these consolidation initiatives, the company said.
“Affected employees may be transferred to other Saputo facilities and, if there are no vacancies, they will receive severance benefits and reassignment assistance,” it said. she said in a statement.
Saputo CEO Lino Saputo said the changes would lay the foundation for the company’s future growth in the United States, while improving its cost structure.
“Strategic investments, footprint rationalization and facility optimization will lay the foundation for a significant improvement in our operational performance as we consolidate operations in world-class facilities,” he said. in a press release.
“Also designed to increase production capabilities in some of our high-margin, value-added product categories, these initiatives will contribute to our goal of further enhancing our value proposition as a high-quality, low-cost processor in the States. -United. »