Swedish baker Lantmännen Cerealia is to close the company's Mjölby-based mill.

The company was instructed by its board on 18 December that negotiations with affected employees are expected to get underway in the New Year.

Lantmännen Cerealia said it has been working on "structural rationalisations" in its mill activities for a number of years.

The programme has led to a cut in the number of mills from five to one in Denmark, and from two to one in Norway and Latvia.

Lantmännen Cerealia currently has three mills in Sweden - in Malmö, Mjölby and Uppsala.

The company said the review showed that the closure of Mjölby will "improve competitiveness by increasing capacity utilisation and reducing costs".

Investments are also being made to increase operational safety and raise capacity slightly in Uppsala, the firm said.

"Lantmännen Cerealia is aiming to have the most effective and profitable production structure possible on a strongly competitive market," the company said.

A spokesperson for the company told just-food that it was unsure as to how many job cuts would be made.

"We don't know that figure yet. Negotiations will start in the second week of January and so we will know by the middle or end of that month."

The company declined to comment on how much it would be saving with the closure.

The mill in Mjölby produces around 40,000 tons of bakery flour per year and has 11 employees.