Saputo: will close four of its facilities

Montreal / CA. (si) Saputo Inc. announces measures aimed at improving its operational efficiency. Saputo will close four of its facilities, two in Canada, in Wetaskiwin and Glenwood (Alberta); as well as two in the USA, in New London (Wisconsin) and Hancock (Maryland). The current production will be integrated into other Saputo facilities. The first facility closure is scheduled in May 2014 and the last closure will occur in December 2015. In all, approximately 180 employees will be impacted. These employees will be provided with severance and outplacement support; and some will be offered the possibility of transferring to other Saputo locations. Over the recent years, Saputo has maintained efforts to pursue additional efficiencies and decrease costs while strengthening its market presence. The announced measures are part of the Company´s continual analysis of its overall activities. In relation to these rationalizations, the Company intends to add approximately 35 million Canadian Dollars (CAD) in new fixed assets in other Saputo facilities and will avoid the same amount in capital expenditures that would have been necessary to upgrade impacted facilities. Costs connected with the closures will be approximately 19,8 million CAD after taxes, which include an after tax fixed assets write down of approximately 14,3 million CAD. These costs will be recorded in the fourth quarter of fiscal 2014. Annual savings after taxes should be approximately 4,8 million CAD and should commence in fiscal 2015.