US: Bimbo announces US plant closure, 178 jobs axed
Bimbo Bakeries USA is part of the Mexican Grupo Bimbo
Mexican bakery group Grupo Bimbo has announced it will cease production at its bakery in New York state.
The closure of the plant in Bay Shore in July will see 178 jobs axed.
The plant produces Entenmann's lines. Output is set to shift to other bakeries manufacturing Entenmann's products.
"This was a difficult decision because of the highly engaged team of associates at this bakery," said Rod Cunha, vice president of operations at Bimbo Bakeries USA.
"However, after a critical assessment, it was apparent that the facility, first opened in 1961, cannot operate efficiently on a cost competitive basis with the other bakeries in our system."
Bimbo will continue to operate a sales centre, distribution facility and thrift store at this location, and house corporate functions including R&D, IT and marketing.
The firm said HR representatives would meet with affected employees and union representatives to discuss severance and other benefits.
Earlier this year Bimbo Bakeries closed a plant in Sioux city which saw 64 jobs put at risk and at the end of last year two plants in Pennsylvania were closed.
Horsham, Pennsylvania (March 27, 2014) – Bimbo Bakeries USA (BBU) announced today that it will cease production at its bakery located at 1724 5th Avenue in Bay Shore, New York by July 2014.
The bakery produces Entenmann’s products and employs approximately 265 associates, 178 of whom will be impacted when the Company shifts production to other Entenmann’s producing bakeries in its manufacturing network.
“This was a difficult decision because of the highly engaged team of associates at this bakery,” said Rod Cunha, BBU Vice President of Operations for the Metro Area. “However, after a critical assessment, it was apparent that the facility, first opened in 1961, cannot operate efficiently on a cost competitive basis with the other bakeries in our system.”
“We are committed to ensuring that there will be no change in the quality, freshness or availability in the Entenmann’s products consumers have come to know and love,” said Cunha.
BBU will continue to operate a sales center, distribution facility and thrift store at this location, and house corporate functions including Research and Development, IT and Marketing. BBU has more than 1,600 jobs in New York State and employs hundreds of associates in Suffolk County.
Entenmann’s will continue its commitment to the Long Island community including the upcoming Entenmann’s Great South Bay Run on October 4, 2014.
Human resources representatives will meet with impacted associates and union representatives to discuss severance and other benefits, as well as resources available to assist associates in this time of transition.
“We value and respect our associates and will assist them as we can,” said Cunha.
Original source: Bimbo Bakeries USA
The acquisition in September 2011 of Cía de Alimentos Fargo by Grupo Bimbo will emphasise a strong diversification strategy towards value-added bakery products, and secure future capital investment in...
- Danone's global push for Danonino – interview
- How Hormel Foods can benefit from Justin's
- RTRS looks for systemic solutions to progress
- Tackling infant formula fraud in China
- The balancing act at Amy's Kitchen - interview
- Nestle sets new savings target
- Premier takes control of powders JV Knighton
- Wilmar, Adani and Ruchi Soya announce India JV
- TreeHouse rationalises production network
- Danish Crown profits slide in "tough" market