Mondelez to close Toronto bakery

Mondelez to close Toronto bakery

Global snack group Mondelez International has said it intends to close its Lakeshore bakery in Toronto in the third quarter of 2013.

The 625,000 square-foot biscuit facility produces a variety of cookies and crackers. A proportion of production will be transferred to bakeries in Montreal and East York, while the remainder will be split between other North American facilities and comanufacturers.

The closure will result in 550 jobs being lost, Mondelez revealed.

Alvaro Cuba, VP operations for Mondelez Canada, said the 64-year old plant faces some "unique challenges" resulting from the "changing neighbourhood surrounding the facility."

"While this was an appropriate location for a large bakery when it was first built, the significant residential development surrounding it has led to operating constraints that will become increasingly difficult with the further residential expansion that is underway. With the facility's aging infrastructure, and underutilised manufacturing capacity, further investment is not a viable option."

Cuba added the facility no longer supports" Mondelez's strategy to "make the most efficient use of our manufacturing assets".