Agropur runs on grants and interest-free loans

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Then, Agropur is in the process of closing its plant in Saint-Damase, which employed 110 people, the giant dairy products recently been awarded 57.4 Million$ in financial aid to Quebec to upgrade three other facilities.

Last week, the prime minister François Legault visited the factory of Agropur, Beauceville, to announce a grant of$ 4.7 Million and an interest-free loan of$ 21.7 Million. Agropur plans to invest up 55.8 M$ of systems of automation and robotisation, will lead to “the creation of 26 jobs pay,” said Mr. Legault.

However, the plant in Beauceville will host a part of the production that must stop in Saint-Damase, in April.

The rest of the production will be transferred to the factory of Agropur Saint-Hyacinthe. It will be also modernized with the financial support of Québec.

The government has quietly approved last fall with a grant of$ 3.3 Million and an interest-free loan of$ 3.8 Million for this project, which has not yet been publicized.

In addition, Quebec has authorized an interest-free loan of$ 20.5 Million and a grant of$ 3.3 Million for the factory of Agropur in Granby.

The layoffs-surprises

These grants totaling$ 11.4 Million and these interest-free loans of more than$ 46 Million constitute the largest group of financial aid granted by the government Legault since his accession to power, in October.

The factory of Saint-Damase was spent in the bosom of Agropur in 2013, when the acquisition of Fromagerie Damafro. At the time, Agropur had assured him that all workers would retain their jobs. To explain the closure of the factory, Agropur said in September that it would make important investments, but that it had been impossible to conclude ” a long-term agreement with the employees.”

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Agropur has also received, in 2014 and 2015, a total investment of nearly 658 Million$ of public institutions and quasi-public such as the Caisse de depot, Investissement Québec and the Fonds FTQ.

Note that the main competitor of Agropur in Quebec, Saputo, has not received any financial assistance from the ministry of the Economy since at least April 2014.

Last year, Agropur has recorded net surplus earnings (profits) of$ 68 Million, in sharp decline compared to the$ 175-Million released in 2017, and this, despite a 5% increase in revenue to$6.7 b.

Agropur has not recalled The Newspaper.