Saputo closing Wisconsin cheese plant

Canadian dairy processor Saputo Inc. says it will shut down a cheese manufacturing facility in Wisconsin next May, affecting about 126 workers.

The Montreal-based company says the closure will improve its operating efficiency by integrating production into a new blue cheese plant 430 km west of the site in an area near Minneapolis.

Read: Saputo acquires Australian dairy firm for $1.29 billion

The employees will be provided severance, outplacement support and some may be able to transfer to other Saputo locations.

The closure is expected to cost $22 million after taxes, including a writedown of about $7 million to be booked at the end of the 2017.

Read: Saputo’s quarterly profits down 3.4% on lower volumes, fluctuating loonie

Annual savings are expected to reach $7 million in about two years.