Grupo Bimbo has confirmed plans to close its Elk Grove bakery in Pennsylvania.
“After careful analysis and consideration, it was apparent that the facility did not have the infrastructure and manufacturing capability to compete in the marketplace,” said Joe Dangelmaier, regional VP of operations in California.
The company said it will phase out operations at the site by November. Production of tortillas, bread and buns will be shifted to other bakeries in the company’s manufacturing network.
Some 128 people are employed at the facility. Bimbo is meeting with union representatives to discuss severance and benefits, the company said.
The highly competitive US bakery category has undergone a period of consolidation following the demise of Hostess Brands. Nevertheless, with the overall category remaining flat to down, the sector remains marked by over-supply and pressure on pricing.
Last month, Bimbo confirmed plans to close a bakery in Easton, Pennsylvania. At the time, the company said the site was “incapable of competing effectively in the market place”. Bimbo is building a new plant 30 miles from Easton in Macungie.