United States | Saputo will close three facilities and build a new one

(Montreal) Dairy giant Saputo on Thursday announced changes to its U.S. operations, saying it will permanently close three facilities, build a new packaging plant, and expand its cheesemaking operations.

The Montreal-based company has made it clear that the goal of the capital investments and consolidation is to rationalize its manufacturing footprint in the United States.

Saputo will spend $240 million on a new cutting and packing plant in Franklin, Wisconsin, which is expected to be fully operational by the end of 2025 and create 600 jobs. It will also invest $75 million to expand its cheese business on the West Coast of the United States.

Once those facilities are operational, the company will close its plants in Big Stone, South Dakota, Green Bay, Wisconsin, and Southgate, California.

The company did not immediately respond to questions about how many jobs could be lost in the wake of the shutdown.

Saputo CEO Lino Saputo said the changes will lay the foundation for the company’s future growth in the United States, while improving its cost structure.

“Strategic investments, rationalization of the footprint and improvement of facilities will lay the foundation for a significant improvement in our operating performance as we consolidate operations into world-class facilities,” he said in a press release.

“These initiatives are also designed to increase production capabilities in certain high-margin and value-added product categories, and these initiatives will contribute to our goal of further strengthening our value proposition as a high-quality, low-cost processor in the United States.” -. »

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