“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 CEO. “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 after taxes, which include a non-cash fixed assets write-down of approximately CDN$4 million after taxes. 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.
