Grupo Bimbo has decided to no longer sell frozen baked goods in Argentina after a fire destroyed one of its plants in Buenos Aires province.

“Due to this incident and after having analysed all possible actions to reverse the damage, we are sorry to say we are not capable of rebuilding the factory and we will not be able to relocate its 300 workers”, a source from the company told Just Food.

The fire took place on 9 May at a production facility in San Fernando city. At the site, Bimbo manufactured pre-cooked frozen baguettes, pastries and cookies for the local market.

Marcelo Gasso, union leader of the Sindicato de Pasteleros, which represents about half the 300 workers, told Just Food workers and company representatives met yesterday at the province’s Ministry of Labour.

The union wants Bimbo to relocate a large percentage of the workers in the other three facilities the company operates in Buenos Aires – and to give the remainder better severance terms than have been offered. Negotiations with Bimbo are ongoing.

Bimbo owns five facilities in Argentina and had acquired the one in San Fernando from General Mills in 2016. In 2018, the firm US$25m in the site to increase capacity and technologically update its manufacturing process.

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By GlobalData

In Argentina, Bimbo manufactures and sells white and wholemeal breads, hamburger and hot dog bread, sweet baked goods – such as cookies, sponge cakes and cupcakes – cereal bars, snacks and flour tortillas.