Saputo has unveiled its plan to close two manufacturing facilities in Trenton, Ontario, and Saint John, New Brunswick, Canada.
The dairy company will close its Trenton and Saint John facilities in September 2020 and January 2021, respectively.
With these closures, Saputo intends to improve its operational efficiency and balance its manufacturing footprint and sales force in Canada.
This decision forms part of the company’s continual analysis of its overall activities.
Saputo will shift production from the two sites to its other manufacturing units across Canada.
The closure plan will impact nearly 280 employees working at the Trenton and Saint John manufacturing facilities.
Saputo said: “These employees will be provided with severance and outplacement support, and some will be offered the possibility of transferring to other Saputo locations within the Dairy Division.”
The company announced its decision in its financial results for the quarter ending 31 December 2019.
In this quarter, the company registered revenue of C$3.89bn ($2.92bn), a growth of 8.8%. This growth has been attributed to acquisitions made last year, including Lion Dairy & Drinks and Dairy Crest Group.
The net earnings of the company were C$197.8m ($148.6m), down by 42.2% from the same period last financial year.
Going forward, Saputo intends to diversify its product portfolio by exploring more plant-based opportunities.
It also plans to enhance its footprint in the sector by making more investments in manufacturing, sales and distribution.
