Canada Bread is to invest around C$100m (US$96.4m) in its fresh bakery operations to build a new 370,000 square foot bakery in south-western Ontario.


The news comes as the firm announces plans to close its three existing bakeries in Toronto.


The facilities, which have “ageing assets … constrained by urban development and cannot support the business’ long-term growth”, will have its production phased out over a two-year period.


The first bakery is expected to close in late 2011, the next in early 2012 and the third in early 2013. Employees will be given the chance to consider the 300 positions at the new facility or other available jobs elsewhere across the company’s operations, the firm said.


The company said it is investigating several potential locations for the new facility and a final decision on the location is expected by the end of March.

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“This new bakery facility will be the largest in Canada and reflects our commitment to investment and growth as Canada’s leading value-added bakery business,” said Richard Lan, president and CEO of Canada Bread.


“It will drive significantly improved efficiencies in our manufacturing and supply chain, providing the capacity to support organic growth and the growing needs of our customers.”


Construction is expected to start within six months of securing a location with the first production lines being commissioned around 12 months later.


Canada Bread is 89.8% owned by Maple Leaf Foods.

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