Grupo Bimbo, the Mexican bakery giant, is to close a plant in the US, as it builds a new facility 30 miles away.

Bimbo has decided to end production at its site in Easton in Pennsylvania. Operations will be “phased out” later this year, the company said. Around 78 jobs will be affected.

“This was a difficult decision because of the committed team of associates at the Easton Bakery,” Rod Cunha, vice president, manufacturing at Bimbo Bakeries USA, said. “However, the age of this facility and its landlocked nature makes it incapable of competing effectively in the marketplace.”

The company is building a new plant 26 miles south west in Macungie. Bimbo said 150 jobs will be available at that site. Cunha said the company was encouraging staff to apply for positions.

Reports in the US cited staff who claimed pay at the new facility was lower than at the Easton site. Bimbo declined to provide further comment.

Bimbo, which has brands including Arnold, Boboli and Oroweat, employs around 25,000 staff in the US and operates 70 manufacturing sites in the country.