Cheese producer Saputo has announced plans to close its cheese manufacturing facility located in Fond du Lac, Wisconsin, US.

The latest move is part of the company’s continual analysis of its overall activities that are aimed at improving its operational efficiency.

Following the plant closure, which is set to take place in May next year, the existing production will be integrated into Saputo’s newly constructed blue cheese facility in Almena, Wisconsin.

Saputo noted that about 126 employees will be impacted and will be provided with severance and outplacement support.

Some of them will be offered the possibility of transferring to other locations of the company.

Saputo expects the costs connected with the closure to be about C$22m ($17.3m) after taxes, which include an after-tax fixed assets write-down of about C$7m ($5.51m).

“Saputo noted that about 126 employees will be impacted and will be provided with severance and outplacement support.”

Annual savings after taxes are expected to commence in fiscal 2019 and gradually increase over the next two fiscal years, reaching about C$7m ($5.51m) in fiscal 2020.

Through the Cheese Division, Saputo produces, markets and distributes various cheese products in the US, including a broad line of mozzarella, American-style and specialty cheeses such as ricotta, provolone, blue, parmesan, goat cheese and romano.

The company holds a portfolio of import licences for specialty cheeses that are manufactured abroad.

Saputo sells its products under a variety of its brand names and under customer labels.

It produces, markets and distributes a range of dairy products, including cheese, fluid and extended shelf-life milk, cream and cultured products, as well as dairy ingredients.