Saputo closes German plant; mulls over plant closure in Wales
The affected plants are in Heiden, Germany, and Newcastle Emlyn, Wales.
MONTREAL, QUEBEC--(Marketwire - Feb. 25, 2013) - Saputo Inc. (TSX:SAP) ("Saputo" or the "Company") announces today the closure of its cheese manufacturing plant in Heiden (Germany) and, in conformity with the legislative requirements in the United Kingdom, enters into a 30-day consultation period for the proposed closure of its facility in Newcastle Emlyn, Wales (United Kingdom). The two plants were acquired in 2006 and 2007 respectively. The Germany plant specializes in Italian specialty cheeses for the retail market segment, whereas the United Kingdom facility mainly produces mozzarella for the food service market segment.
Since acquiring the businesses, Saputo has aimed to penetrate the European market and get a better understanding of its realities and dynamics. The past few years have been a learning and challenging experience. Today, the Saputo European business does not have sufficient critical mass to be profitable and the Company does not see short to mid-term opportunities to ensure such profitability. Saputo has therefore decided to close its Germany plant and proposes the closure of its United Kingdom facility, subject to the consultation period, to further concentrate efforts and resources in its current platforms and other markets.