Saputo Inc, Canada's largest dairy processor and a major U.S. cheese producer, will close its milk and cream processing plant in Brampton, Ontario, by October 31.
Operations will be integrated into other facilities in Ontario, Saputo said today.
Saputo also said it would consolidate its distribution activities of the greater Toronto area into one distribution center in Vaughan, Ontario. These changes will be implemented gradually and should be completed at the end of September 2010.
The changes will affect about 190 employees. Some 120 employees would be offered the possibility to be relocated within Saputo's Dairy Products Division in Canada.
"These decisions are part of the company's continual analysis of its overall activities and the implementation of measures aimed at improving its operational efficiency,” Saputo said in today's news release.
Costs connected with this announcement will total about $4.6 million, after tax. That includes a fixed assets write-down of approximately $2 million, after tax. Saputo expects annual after-tax savings of approximately $6.5 million.
Saputo produces, markets and distributes a wide array of products, including cheese, fluid milk, yogurt, dairy ingredients and snack-cakes.
The publically traded company is the 11th largest dairy processor in the world and the largest in Canda. Saputo is also the third largest dairy processor in Argentina. It's among the top three cheese producers in the U.S. and the largest snack-cake manufacturer in Canada.
Saputo sells its products in more than 40 countries under well-known brand names such as Saputo, Alexis de Portneuf, Armstrong, Baxter, Dairyland, Danscorella, De Lucia, Dragone, DuVillage 1860, Frigo Cheese Heads, Kingsey, La Paulina, Neilson, Nutrilait, Ricrem, Stella, Treasure Cave, HOP&GO!, Rondeau and Vachon.
Saputo's shares are listed on the Toronto Stock Exchange under the symbol SAP.