Premier Foods plc plans to invest GBP20m (US$33m) to double production capacity of its Mr Kipling cake slice brand.

The investment will see the development of a new production and packing line at the company’s cake manufacturing site in Carlton, Barnsley.

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The new line has the capacity to produce of 300m cake slices per year, doubling the company’s current capacity.

Factory general manager for the Carlton site, Jason Ramsay, said: “This investment is a strong vote of confidence by Premier Foods in the Carlton site and the Carlton workforce. We have been manufacturing Mr. Kipling cake at Carlton since 1975 and this latest news is a huge boost for all of us.”

The news comes amidst reports that US billionaire Alec Gores is looking to buy a  stake in the Hovis brand as the company struggles to overcome a combined debt mountain and pension deficit of around GBP1.3bn.

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