Saputo: European profits elusive, 2 cheese factories to close in Wales, Germany
Saputo president and CEO Lino Saptuo Jr. and his father, Lino, chairman of the board, get set for the company's annual meeting in Laval, Que., in this July 2012 file photo. (Paul Chiasson/ THE CANADIAN PRESS)
Published Monday, February 25, 2013 10:59AM EST
MONTREAL -- Saputo Inc. is planning to close two European cheese plants, one in Wales and the other in Germany.
The Montreal-based food company said Monday that it is making the move because the European operations aren't large enough to be profitable and there is little chance of turning that around in the near future.
A total of 140 employees will be affected if Saputo gets approvals for both closures.
The company is required under U.K. law to hold 30 days of consultation before it can close the plant in Wales.
The Welsh plant, which makes mozzarella cheese for the food services industry, was acquired in 2007.
The German plant, which makes specialty cheeses for the retail market, was acquired in 2006