Canadian baker Canada Bread has announced plans to close another bakery.
The company, in which Maple Leaf Foods is the majority shareholder, is proposing to close its Delta facility in British Columbia.
The closure, scheduled for November, will improve efficiency and enable Canada Bread to invest more money to expand a site in Edmonton. Canada Bread wants to boost tortilla production at the Edmonton site.
However, around 155 workers at the Delta facility will lose their jobs, although Canada Bread said the staff will be “encouraged” to find work elsewhere with the company.
“These network changes support our focus on both cost reduction and future growth, by increasing our capacity utilisation and expanding our production in the high-growth tortilla category,” said Canada Bread president for fresh bakery Barry McLean. “We regret the impact on our skilled and dedicated employees and we will provide resources and support to ease their transition to new employment.”
Two months ago, Canada Bread announced plans to close its Laval bakery in Quebec.
In February, the company, in which Maple Leaf owns a 90% stake, struck a deal to sell its prepared sandwich business to Premium Brands Holding Corp.
Last autumn, Maple Leaf set out a five-year plan to restructure its processed meats and bakery operations to boost margins.