Saputo Inc. closing two plants and selling one plant in its Milk Division
Saputo Inc. closing two plants and selling one plant in its Milk Division
09/15/2003 0:00 UTC
(Montréal, September 15, 2003) – Saputo Inc. announces the closing of two plants, and the selling of another one, in its Milk Division, which operates in Canada. The plants located in Calgary (Alberta) and in Armstrong (British Columbia) will cease operating in January and February 2004, respectively. The company is also announcing the sale of its manufacturing operation carried out at Annacis Island (British Columbia) to Soyaworld, a soy-based beverage company from British Columbia. In some cases employees will be offered the possibility of transferring to other company facilities. As a result, 254 employees will be affected by this decision.
These measures are part of Saputo’s continual analysis of its activities and the implementation of measures aimed at improving its operational efficiency.
The Calgary, Alberta, plant, which employs 107 people, will close in January 2004. The production of the plant will be integrated into the Edmonton plant. The Armstrong, British Columbia, plant, which employs 73 people, will cease its operations by February 2004. The plant’s production will be integrated into other company facilities.
The Annacis Island, British Columbia, manufacturing operation which employs 74 people, will be sold to Soyaworld, a soy-based beverage company from British Columbia. The majority of the current manufactured volume are products manufactured by Saputo for Soyaworld. The transaction is expected to close between the end of November 2003 and February 2004. Terms of the transaction will not be disclosed. Employees of the Annacis Island plant will also be offered the possibility to take on employment with Soyaworld or to be transferred to other company facilities.
The company intends to add new fixed assets, in relation to these rationalizations, in an amount of approximately $10.1 million. After-tax costs connected to these rationalizations will be approximately $5.7 million, including a $1.5 million non-cash effect related to the devaluation of fixed assets. The Company expects to realize annual after-tax savings of roughly $6.5 million.
After today’s announcement is carried out, the Milk Division (Canada) will operate 10 plants.
About Saputo
Every day, in 46 plants and in our distribution centres, Saputo’s 7,000 employees proudly manufacture, market and distribute a wide range of products that find their way daily on store shelves, in restaurants and in prepared meals. Active in the dairy and grocery product sectors, the Company markets its products under such brand names as Saputo, Stella, Frigo, Dragone, Armstrong, Caron, Cayer, Treasure Cave, Dairyland, Baxter, Nutrilait and Vachon. A dynamic world-class company, Saputo Inc. is the largest dairy processor in Canada and one of the leading cheese manufacturers in North America. Saputo Inc. is a public company and its shares are listed on the Toronto Stock Exchange under the symbol SAP. Visit www.saputo.com for further information.
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Claude Pinard
Vice-president, Communications
(514) 328-3381
These measures are part of Saputo’s continual analysis of its activities and the implementation of measures aimed at improving its operational efficiency.
The Calgary, Alberta, plant, which employs 107 people, will close in January 2004. The production of the plant will be integrated into the Edmonton plant. The Armstrong, British Columbia, plant, which employs 73 people, will cease its operations by February 2004. The plant’s production will be integrated into other company facilities.
The Annacis Island, British Columbia, manufacturing operation which employs 74 people, will be sold to Soyaworld, a soy-based beverage company from British Columbia. The majority of the current manufactured volume are products manufactured by Saputo for Soyaworld. The transaction is expected to close between the end of November 2003 and February 2004. Terms of the transaction will not be disclosed. Employees of the Annacis Island plant will also be offered the possibility to take on employment with Soyaworld or to be transferred to other company facilities.
The company intends to add new fixed assets, in relation to these rationalizations, in an amount of approximately $10.1 million. After-tax costs connected to these rationalizations will be approximately $5.7 million, including a $1.5 million non-cash effect related to the devaluation of fixed assets. The Company expects to realize annual after-tax savings of roughly $6.5 million.
After today’s announcement is carried out, the Milk Division (Canada) will operate 10 plants.
About Saputo
Every day, in 46 plants and in our distribution centres, Saputo’s 7,000 employees proudly manufacture, market and distribute a wide range of products that find their way daily on store shelves, in restaurants and in prepared meals. Active in the dairy and grocery product sectors, the Company markets its products under such brand names as Saputo, Stella, Frigo, Dragone, Armstrong, Caron, Cayer, Treasure Cave, Dairyland, Baxter, Nutrilait and Vachon. A dynamic world-class company, Saputo Inc. is the largest dairy processor in Canada and one of the leading cheese manufacturers in North America. Saputo Inc. is a public company and its shares are listed on the Toronto Stock Exchange under the symbol SAP. Visit www.saputo.com for further information.
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Claude Pinard
Vice-president, Communications
(514) 328-3381
Saputo Group Inc.
Camillo Lisio, Executive Vice-President
(514) 328-3314
