Saputo to exit Europe

Canadian cheese giant Saputo has announced the closure of its manufacturing plant in Heiden, Germany and has entered into a 30-day consultation period for the proposed closure of its facility in Newcastle Emlyn, Wales in the UK. The two plants were acquired in 2006 and 2007 respectively. The Germany plant specialises in Italian speciality cheeses for the retail market segment, whereas the United Kingdom facility mainly produces mozzarella for the food service market segment.

The company says, “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.”

Around 140 employees will be affected.