Saputo Investing $169M to Modernize Cheese Plants

International dairy processor Saputo Inc. revealed plans this week for a $169 million capital investment plan to improve its manufacturing asset base. Under the initiative, the company will expand and modernize three cheese production plants in Wisconsin and California to bolster its growth plans in the retail space.

“Staying true to our disciplined approach and commitment to shareholder value creation, we are executing our Global Strategic Plan with intention and precision. Today’s announcement is the first in a series of investments and consolidation activities that will increase efficiency and productivity, improving our ability to meet the evolving needs of our customers and consumers,” Lino A. Saputo, chair, president, and CEO of Saputo, said in a company release.

The project at the US plants will start in the second quarter of 2022 and reach completion after about two years. As part of the effort, Saputo will consolidate its West Coast cut-and-wrap operations by shuttering its Tulare, CA facility in fiscal year 2023. Impacts on workers at the Tulare are expected to be “minimal” because the firm operates other locations in the community.

Saputo also intends to close two manufacturing sites in Australia.

The company said the capital investments and consolidation initiatives will bring in annual savings of $112 million by the end of fiscal year 2025.

Powder & Bulk Solids reported in May 2021 that Saputo launched a $30 million project to expand its manufacturing plant at the Las Cruces Innovation and Industrial Park in Las Cruces, NM.