Saputo Announces the Closure of its Plant in Brampton, Ontario, Canada
The Company also announced the consolidation of all the distribution activities of the greater Toronto area into one distribution center which will be located in Vaughan, Ontario.
31 Mar 2010 --- Saputo Inc. announced the closure of its Brampton, Ontario plant which processes milk and cream products. The plant will cease its activities by October 31, 2010. Operations will be integrated in other facilities located in Ontario.
The Company also announced the consolidation of all the distribution activities of the greater Toronto area into one distribution center which will be located in Vaughan, Ontario. These changes will be implemented gradually and should be completed at the end of September 2010.
In all, this announcement will affect approximately 190 employees from whom around 120 employees will be offered the possibility to be relocated within the Dairy Products Division (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.
Costs connected with this announcement will be approximately $4.6 million, after tax, which includes a fixed assets write-down of approximately $2 million, after tax. Saputo expects annual after tax savings of approximately $6.5 million.
