News Milk
Saputo modernizes and closes dairies
The Canadian dairy giant Saputo is allocating nearly €150 million to modernize and expand a number of plants in the US and Australia. It also wants to close other branches. The aim of all this is to gain a stronger position on the supermarket shelf and thus be able to compete more effectively.
The factories to be upgraded are located in California and Wisconsin and will be in conversion for 24 months from the fourth quarter of this year. It also plans to close a factory in Tulare, California next year. In Australia, Saputo wants to 'streamline' two factories, or to slim down. A limited number of jobs will be lost as a result, the company reports.
Investments, but also savings
The whole operation will also bring savings. As of next year, the benefit will gradually increase to a gross amount of €98 million, it is reported.
Saputo is one of the ten largest dairy companies in the world and has shown significant expansion in recent years. The company started in Canada, but then spread its wings to the US, where it is now larger than in its own country, especially with cheese products. It then bought companies in countries such as Australia and the United Kingdom.
Last year, the listed company's turnover amounted to more than €12,5 billion and made a net profit of €548 million. Saputo is an important cheese producer, but is also active in the sale of fresh dairy products.
Klaas van der Horst
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