Mexico-based baker Grupo Bimbo is to expand one of its plants in Spain as part of plans to "modernise" its operations in Iberia.

Bimbo plans to build a new production centre at its site in Guadalajara, north east of Madrid. The company said the centre will have an "highly automated line" to help it manufacture new products. Construction will start next year and the facility is expected to be up and running in early 2015. Bimbo is also planning to set up a logistics warehouse in the city.

The company said the plans for its Iberian business would see it "renovate" production processes, including the use of more automated lines, as well as the addition of more lines. Bimbo insisted the initiatives would help it focus on competitiveness and product quality.

It had not returned a request for comment on the possible impact on jobs at the time of writing.