Saputo cutting costs by closing three Canadian plants that employ 230 workers

Saputo says it will close three plants in Eastern Canada that employ some 230 workers in a move to cut costs and boost efficiency.

MONTREAL — Saputo says it will close three plants in Eastern Canada that employ some 230 workers in a move to cut costs and boost efficiency.

The Montreal-based dairy processor and cheese maker said its plant in Sydney, N.S., will close in June, followed by another in Princeville, Que., in August. A third facility in Ottawa will close in December 2017.

The Sydney operations were acquired in 2014 as part of the purchase of the fluid milk activities of Scotsburn Co-Operative Services.

Saputo bought the Quebec plant, which makes goat cheese, in 2005 as part of a deal for Woolwich Dairy.

The Ottawa facility was part of the $465-million acquisition in 2008 of Nielsen Dairy from Weston Foods.

Saputo spokeswoman Sandy Vassiadis said the closures are part of the company’s constant drive to improve efficiency by moving production to facilities that aren’t fully used, have more modern equipment or can be expanded.

“We compare the facilities that do similar products and these ones…couldn’t raise the bar to attain efficiency levels like the other plants that do similar products,” she said in an interview.

Saputo is able to close these plants because it has other operations in the affected provinces that allow it to fulfil Canadian regulations that require milk to remain in its province of origin.

The move announced Tuesday is expected to save $9 million annually by fiscal 2019.

Meanwhile, Saputo (TSX:SAP) plans to invest about $32 million in other locations over the next two years.

Saputo is the largest cheese manufacturer in Canada and one of the top 10 dairy processors in the world. It currently operates 54 plants around the world, including 24 in Canada, that employ about 12,000 workers.

Just Posted

Man accused in March Grandview murder free on bail

Quentin Lee Strawberry is facing charges of second-degree murder and assault causing bodily harm

Lowe’s in Red Deer stays open

34 store closures in Canada

Trudeau to take sober approach to unveiling new cabinet for minority mandate

OTTAWA — It will be all business this afternoon when Justin Trudeau… Continue reading

Lowe’s says they will close 34 underperforming stores across six provinces

BOUCHERVILLE, Que. — Lowe’s Companies Inc. says it will close 34 underperforming… Continue reading

Central Albertans help families during holidays with Christmas Wish Breakfast

It takes a community to help a community. And Sunday morning at… Continue reading

Your community calendar

Nov. 19 The Mountview Sunnybrook Community Association will hold its AGM at… Continue reading

Future of medicare hangs in the balance

A marathon British Columbia court case that could end up deciding the… Continue reading

Michael Dawe: All the western provinces had their own police force at one time

The provincial government recently announced a formal investigation is being launched into… Continue reading

Fleury makes amazing save to hold off Leafs for 450th win

LAS VEGAS — The only thing missing for Marc-Andre Fleury was a… Continue reading

Canada prepping for second-chance Olympic baseball qualifier in March

When Scott Mathieson announced his retirement from professional baseball last month, he… Continue reading

Shawn Mendes, Daniel Caesar pick up Grammy nominations

TORONTO — Shawn Mendes is among the Canadian nominees at this year’s… Continue reading

New acts rule Grammys as Lizzo, Lil Nas, Eilish lead in noms

NEW YORK — The Grammys are screaming “Cuz I Love You” to… Continue reading

Andre Burakovsky scores twice, Avalanche beat Flames

Avalanche 3 Flames 2 CALGARY — Andre Burakovsky stayed red-hot with another… Continue reading

Most Read