SAPIF - Saputo announces initiatives to streamline US manufacturing footprint

• Saputo ( OTCPK:SAPIF ) on Wednesday announced consolidation initiatives to streamline its U.S. manufacturing footprint.
• SAPIF plans to invest C$45M to convert its mozzarella cheese manufacturing facility in Reedsburg, Wisconsin into a goat cheese manufacturing plant.
• This move aims to increase capacity, expand SAPIF's position in growing specialty cheese categories and improve productivity.
• Current cheese manufacturing from the Reedsburg facility will be transferred to other existing facilities in the U.S. to increase capacity utilization, improve operational efficiencies and reduce costs.
• SAPIF plans to close its existing goat cheese manufacturing facility in Belmont, Wisconsin.
• ~200 impacted employees from the Belmont facility will be provided with financial support.
• These initiatives will begin in Q2 2023 and are expected to take up to 18 months to implement.
• The initiatives are expected to result in annual savings and benefits gradually, starting in 2024, and reaching ~C$9M (C$6M after taxes) by 2025.
• Costs related with the initiatives will be ~C$15M after taxes, including a non-cash fixed assets write-down of ~C$10M after taxes.
• These costs will start to be recorded in Q2 2023.

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