BUSINESS

Saputo, Canada's Largest Dairy, To Shut Down Three Plants

03/22/2016 03:01 EDT | Updated 03/23/2017 05:12 EDT
CP

MONTREAL — Saputo Inc. says it will close three plants in Eastern and Atlantic Canada employing some 230 workers by the end of next year in a move to cut costs and boost efficiency.

The Montreal-based dairy processor and cheese maker said its plant in Sydney, N.S., will close in June, followed by another in Princeville, Que., in August. A third facility in Ottawa will close in December 2017.

Saputo owns numerous dairy brands, including Dairyland, Neilson and Vachon. It owns a number of other food brands, including the Canadian rights to Hostess products.

Production at the three closed facilties will be diverted to other Saputo facilities.

The move announced Tuesday is expected to save $9 million annually by fiscal 2019.

Meanwhile, Saputo plans to invest about $32 million in other locations over the next two years.

Saputo is the largest cheese manufacturer in Canada and one of the top 10 dairy processors in the world.