CANADA – Saputo, Montreal-based Canadian dairy company is set to build a new dairy processing facility worth US$240 million in Port-Coquitlam, Canada.
With the new state-of-the-art facility, the company aims to strengthen its footprint and better serve the Western Canadian market.
This was revealed by the company in its 2018 fiscal year results which indicated that construction is expected to be completed by 2021.
The company had earlier revealed that it will sell its Burnaby dairy plant to an unidentified buyer for US$218 million with the deal expected to close in the 2019 fiscal year.
A new facility in Port-Coquitlam could be part of its plans to modernize its facilities and improve efficiency.
Saputo purchased Burnaby-based Dairyworld Foods, which offers products under the Dairyland brand, for US$407 million in 2001.
The company previously closed three plants; in Ottawa, Ontario; Princeville, Quebec; Sydney, Nova Scotia in 2016, resulting in the loss of 230 jobs.
The company, which began as an Italian-style cheese making company in Montreal in 1954, has become one of the top 10 dairy processors in the world.
Saputo is also expecting to complete its US$100 million purchase of Shepherd Gourmet Dairy in St. Marys, Ontario this month, noting the acquisition will enable the Dairy Division (Canada) to increase its presence in specialty cheese and expand its yogurt offering in Canada.
It also agreed to acquire Australia’s struggling dairy business Murray Goulburn for around US$1 billion.
Last month, Saputo agreed to acquire F&A Dairy Products in a deal worth approximately US$85 million, including F&A’s two manufacturing facilities located in Las Cruces, New Mexico, and Dresser, Wisconsin as well as the company’s 170 employees.
The company reported net earnings of US$852.5 million net earnings on US$11.54 billion in revenues for its fiscal year ending on March 31, which was an increase of 16.6% from 2017.
Saputo produces, markets and globally distributes an array of dairy products including cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients.