Food In Canada

Saputo closes Lancaster plant, moves ops to Reedsburg

By Food in Canada Staff   

Business Operations Food In Canada Dairy Editor pick saputo

Following the start-up of its recently converted goat cheese manufacturing facility in Reedsburg, Wis., Saputo permanently closes its Lancaster, Wis., facility.

The Company intends to transition production from its Lancaster facility to Reedsburg, along with that of its facility in Belmont, Wis., the closure of which was previously announced. The Lancaster and Belmont facilities are expected to close in the fourth quarter of fiscal 2024.

“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.

Print this page


Stories continue below