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Saputo Announces Network Optimization Initiatives in United States Sector; Lino A. Saputo Comments

Saputo Announces Network Optimization Initiatives in United States Sector; Lino A. Saputo Comments


MONTREAL, CANADA
Friday, November 17th, 2023

A strategic transition is taking place for Saputo in Wisconsin. The cheese supplier announced the permanent closure of its Lancaster, WI, facility, making way for its recently converted, state-of-the-art goat cheese manufacturing facility in Reedsburg. Saputo will transition production from its Lancaster facility to Reedsburg, along with that of its facility in Belmont, WI, the closure of which was previously announced. The facilities are expected to close in the fourth quarter of fiscal 2024.

Lino A. Saputo, Chair of the Board, President, and Chief Executive Officer, Saputo“In line with our Global Strategic Plan, the network optimization initiatives announced today will increase operational efficiency and capacity utilization in our USA Sector, while further improving our cost structure,” said Lino A. Saputo, Chair of the Board, President, and Chief Executive Officer. “The start-up of our Reedsburg facility marks another milestone on our journey to strengthen the competitiveness and the long-term performance of our USA cheese network.”

Costs related to the Lancaster facility closure will be approximately CDN $6 million (USD $4.3 million) after taxes, which include a non-cash fixed assets write-down of approximately CDN $4 million after taxes. These costs will start to be recorded in the third quarter of fiscal 2024.

Saputo will transition production from its Lancaster facility to Reedsburg, along with that of its facility in Belmont, WI, the closure of which was previously announced

According to a press release, approximately 100 employees will be impacted by the Lancaster facility closure. Impacted employees will be offered the opportunity to relocate to other Saputo facilities and, if no positions are available, they will be provided with severance and outplacement support.

As Saputo’s global strategy continues to unfold, stick with DMN for the latest updates.

Saputo Dairy USA
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