Canadian dairy company Saputo plans to build a new $240 million dairy processing facility in Port-Coquitlam, Canada as it aims to enhance its service in the Western Canadian market.
The move comes as Saputo’s Canadian dairy division intends to improve operational efficiencies in order to mitigate pressure on margins, low growth and competitive market conditions and retain its position as one of the leading dairy manufacturers in the country.
As part of this strategy, Saputo agreed to offload a production facility in Burnaby, British Columbia to an unidentified customer for approximately $209 million.
Saputo has also entered a lease agreement for the Burnaby facility, which will see Saputo continue to operate at the plant until the construction of the new facility has been completed. Saputo estimates that the state-of-the-art facility will be completed by 2021.