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Canada Bread closes facility

Canada Bread to close a facility in B.C. later this year to help provide capacity for tortilla production at another site


DELTA, B.C.—Canada Bread Company Limited will be closing a fresh bakery facility on Nov. 30.

The company says the aim is to increase efficiencies and provide new capacity at another bakery for its fast-growing tortilla category.

The Delta facility produces a variety of fresh bread products, including pantry breads, rolls, buns and tortillas, primarily for retail customers in Western Canada.

The company says it will gradually wind down operations starting this August. The company will consolidate production at its other bakeries in Langley, B.C. and Edmonton, Alta. At the same time the company will invest $11 million to expand the Edmonton bakery to support increased tortilla production.

The closure will affect 155 employees at the Delta facility.

Closure costs to be incurred in 2011, including severance, decommissioning and asset write-downs, are expected to amount to approximately $4.8 million before tax, $3.1 million of which is cash expenses.

Canada Bread, which is 90 per cent owned by Maple Leaf Foods Inc., manufactures and distributes fresh bakery products, frozen par-baked products and fresh pasta and sauces.

The company had 2010 sales of $1.6 billion and employs approximately 7,500 people at its operations across North America and in the U.K.