The Company anticipates that the dairy market in fiscal 2014 will continue to be challenging. The Dairy Products Division (Canada) will target volume growth in the cheese and dairy ingredients categories, as well as seek volume increases despite declining market trends in the fluid milk category. The Division continues to focus efforts on opportunities presented in the value-added milk category, which offers growth potential. We will pursue investments in product categories, such as specialty cheeses, for which the intention is to maximize exposure across Canada, with coast-to-coast distribution capabilities. As part of our continued analysis of activities, we initiated a project to consolidate the distribution activities of the Greater Montreal area into one distribution center located in Saint- Laurent, Quebec. This new center will comprise the distribution and logistics activities currently being conducted at our Saint-Laurent, Boucherville and Saint-Leonard locations, as well as some administrative offices of the Canadian Division. Employees have gradually started moving into the new facility and the project is on schedule to be completed in March 2014.
In fiscal 2014, we will proceed with the closure of the Winkler, Manitoba facility as part of the Company's continual analysis of its overall activities aimed at improving its overall efficiency. Additionally, the Division announced the closure of its Warwick, Quebec manufacturing facility, scheduled for June 2014. Production will be integrated into other facilities in the province of Quebec. In connection with these rationalizations, the Company intends to add approximately $36 million in new property, plant and equipment in other Saputo facilities, mainly over the course of fiscal 2014. Annual savings after tax should be approximately $6 million as a result of these restructurings and should commence in fiscal 2015. Innovation has always been a priority, enabling us to offer products that meet the needs of today's consumers. Accordingly, we are allocating resources to product innovation allowing us to forge and secure long-term relationships with both customers and consumers.
The Canadian Dairy Commission (CDC) announced on May 1, 2013 the creation of a milk class for mozzarella cheese to be used on fresh pizzas. This new class, which is expected to become effective June 1, 2013, should lower costs for restaurants that prepare and cook pizzas on site and should help grow the mozzarella cheese market segment in Canada.
The Dairy Products Division (Europe) will cease operations in the first quarter of fiscal 2014, as announced in late fiscal 2013.
The Dairy Products Division (Argentina) will continue to seek volume growth in both the domestic and export markets, while increasing its milk intake. The Division continues to face challenges relating to the increasing cost of milk as raw material, while remaining competitive with the selling price in the export market. The Division anticipates that the demand for dairy products in the export market will continue to grow. A three-year project began in early fiscal 2013 to gradually increase manufacturing capacity and face further market growth. The Division will also continue to focus on improving operational efficiencies.
Production capacity continues to be evaluated in line with the objective to reduce excess production capacity at the CEA Dairy Products Sector plants, which, at March 31, 2013, stood at 27% and 34% in cheese and fluid milk activities, respectively.
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