One of worlds top 10 dairy processors, Saputo has announced it will permanently close its Lancaster, Wisconsin facility in the United States (US).
The closure follows the start-up of its recently converted goat cheese manufacturing facility in Reedsburg, Wisconsin, Saputo.
The company intends to transition production from its Lancaster facility to Reedsburg, along with that of its facility in Belmont, Wisconsin, which closed last year.
The investment aims to expand Saputo’s position in specialty cheese catergories.
Both the Lancaster and Belmont facilities are expected to close in the fourth quarter of fiscal 2024.
Chair of the board, president and chief executive officer (CEO) Lino A. Saputo said:
“In line with our global strategic plan, the network optimisation initiatives announced today will increase operational efficiency and capacity utilisation in our US sector, while further improving our cost structure."
Costs related to the Lancaster facility closure will be approximately $6 million CAD after taxes, which include a non-cash fixed assets write down of approximately $4 million CAD after taxes.
These costs will start to be recorded in the third quarter of fiscal 2024.
In the US, Saputo ranks among the top three cheese producers, and is one of the top producers of extended shelf life and cultured dairy products.
Approximately 100 employees will be impacted by the Lancaster facility closure.
Impacted employees will be offered the opportunity to relocate to other Saputo facilities, and if no positions are available, they will be provided with severance and outplacement support.
“The start up of our Reedsburg facility marks another milestone on our journey to strengthen the competitiveness and the long-term performance of our US cheese network,” Lino A. Saputo said.
