Associated British Foods is setting up a new bakery in the UK on the site of its former British Sugar plant in Lincolnshire.

A spokesperson for the Kingsmill bread maker told just-food: “We are delighted to confirm that planning permission has been granted for ABF Grain Products to build a new food production facility on the site of the former British Sugar operation in Bardney.”

The spokesperson said construction of the new facility is expected to be completed in 2018. “We look forward to sharing further details about our plans in due course.” The spokesperson declined to comment on whether the plant would produce branded or private-label lines or both.

Last month, ABF recorded higher annual sales and margins at its grocery business, with management suggesting further improvements were anticipated during the coming year. The company said revenue from its grocery operations, which include brands such as Kingsmill and Jordans, rose by 3% in the 53 weeks to 17 September, climbing to GBP3.27bn (US$4.06bn). ABF said the extra week of trading benefited its revenues, which it said were “held back” by commodity deflation.

Associated British Foods finance director John Bason on Brexit, M&A and grocery results – interview in November 2016