Saputo Inc.

Saputo Inc.

March 07, 2007 13:01 ET

Saputo Announces the Closure of Two Plants in its Canadian Dairy Products Division

MONTREAL, QUEBEC--(CCNMatthews - March 7, 2007) - Saputo Inc. (TSX:SAP) announced today the closure of its cutting and wrapping facility in Boucherville, Quebec, Canada, as well as its cheese manufacturing plant in Vancouver, British Columbia, Canada.

The Boucherville plant will cease to operate on June 2, 2007 and the Vancouver plant will cease its operations on March 31, 2007. In total, 144 employees will be affected by these closures. Both plants' production will be integrated into those of other Saputo Canadian facilities. In some cases, employees will be offered the possibility of transferring to other Company facilities.

This decision is part of the Company's continual analysis of its overall activities and the implementation of measures aimed at improving its operational efficiency.

In relation to these rationalizations, the Company intends to invest approximately $10 million in new fixed assets, mainly in automation, in other facilities of its Canadian Division during the next fiscal year. Costs connected with the closures will be approximately $1.5 million, after tax. During fiscal year 2008, the Company expects after tax savings of about $3 million. For subsequent fiscal years, the annual after tax savings should be of about $4.8 million.

About Saputo

Always with an expert hand, Saputo transforms into success the passion and initiative of the 8,500 dedicated men and women who work in its 46 plants around the world. Combining tradition and innovation, the Company produces, commercializes and distributes the highest quality products under such well-known brands as Saputo, Alexis de Portneuf, Armstrong, Baxter, Dairyland, De Lucia, Dragone, DuVillage de Warwick, Frigo, Kingsey, La Paulina, Nutrilait, Princesse, Ricrem, Sir Laurier d'Arthabaska, Stella, Treasure Cave, Big Daddy, HOP&GO!, Rondeau and Vachon. As one of the top twenty dairy processors in the world, the largest dairy processor in Canada, among the top five cheese producers in the United States, the third largest dairy processor in Argentina and the largest snack-cake manufacturer in Canada, Saputo renews its commitment to excellence and growth every day. Saputo Inc. is a public company whose shares are listed on the Toronto Stock Exchange under the symbol SAP.

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  • Saputo Inc.
    Karine Vachon
    Advisor, Communications