Thursday, February 9, 2023

Saputo rationalizing U.S. cheese plants


 Saputo Inc., which has its head offices in Montreal, has announced major changes at five of its cheese-producing facilities in the United States.


It is building a $240-million cut-and-wrap cheese plant in the Milwaukee suburb of Franklin, Wisc., and when it’s finished in 2025, it will take over from its plant at Big Stone City, S.D.,  south of Fargo,  and one at Green Bay, Wisc.


Instead of pursuing plans to close a plant at Tulare, Calif., it will spend $75 on renovations and convert it to producing string cheese packaging.


And that means the string cheese plant it owns in the Los Angeles area will be closed.


In all, Saputo said, while the new Franklin plant alone is expected to take on about 600 people, about 720 positions will be affected in the pending plant closures. Affected workers will be offered opportunities to relocate to other Saputo plants and, if no spots are available, the workers will get “severance and outplacement support.”


The changes “aim to solidify our ability to meet current and future customer demand and further improve our cost structure,” said Saputo;s chief executive office,  Lino Saputo.