The closure of the plant in Brampton, Ontario will take place at the end of October this year and operations will be transferred to other facilities in Ontario.

Alongside this closure, Saputo will be consolidating its distribution activities in the greater Toronto area into one distribution centre to be located in Vaughan, Ontario. These changes will be implemented gradually and should be completed at the end of September 2010.

The closure of the Brampton plant and the consolidation of distribution activities will cost the company $4.6m after tax and add up to a fixed assets write-down of about $2m after tax. Saputo expects annual after tax savings of approximately $6.5m.

A total of 190 employees will be affected by the changes - 120 of which will be offered the possibility of relocation.