Bimbo Bakeries USA, a division of Mexican bakery giant Grupo Bimbo, has said that it plans to stop production at its Dallas Oroweat bakery.

Some of the plant’s 158 employees are expected to be transferred to other Bimbo operations, with the remainder set to receive severance packages. The company said production would be transferred to other Bimbo plants in the US.

Last year Bimbo closed a Mrs Baird’s bakery facility in Dallas, a move which affected 150 employees. Bimbo employs more than 7,600 people in the US.

Bimbo acquired the Dallas Oroweat plant when it purchased Toronto-based George Weston’s western US assets in early 2002.

Meanwhile, Bimbo’s US unit also announced that its had recently eliminated 50 positions in the company.

“The operations in the US are on solid footing, but these are moves that the company feels it needs to make in order to meet its goals and deal with rising costs,” David Margulies, a spokesman for Bimbo Bakeries USA, was quoted by Dow Jones International News as saying.