 | Saputo Inc. - SAP.t produces, markets, and distributes a wide array of dairy products of the best quality, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients. Saputo is the one of the finest dairy processors in the world, the largest in Canada, the third in Argentina and the fourth in Australia. In the US, the Company ranks among the top three cheese producers and is one of the largest producers of extended shelf-life and cultured dairy products. |  |
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"Saputo Inc. (TSX: SAP) (“Saputo” or the “Company”) announces today measures aimed at improving its operational efficiency. Saputo will close three of its facilities in Canada, in Sydney (Nova Scotia), Princeville (Québec) and Ottawa (Ontario). The closures are scheduled in June 2016, August 2016 and December 2017 respectively. The current production will be integrated into other Saputo facilities. In all, approximately 230 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 $32 million in new fixed assets in other Saputo facilities over the course of the next two fiscal years as part of normal capital expenditure planning. Costs connected with the closures will be approximately $23 million after taxes, which include an after tax fixed assets write-down of approximately $19 million. These costs will be recorded in the fourth quarter of fiscal 2016. Annual savings after taxes should commence in fiscal 2017 and gradually increase over the next two fiscal years, reaching approximately $7 million in fiscal 2019.
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http://canadastockjournal.blogspot.com/2016/04/saputo-inc-sapt.html
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