Maple Leaf Foods Inc. (TSX:MFI)-owned Canada Bread Co. Ltd. announced yesterday that it will close its Delta bakery by the end of November.
The Delta facility produces a range of fresh bread products, including pantry breads, rolls, buns and tortillas, primarily for retail customers in western Canada. It markets products under brands such as Dempster’s, Olafson’s, POM, Ben’s and Olivieri.
The company said production would be consolidated at the company’s other bakeries in Langley and Edmonton.
The closure of the Delta facility, the company said, will affect 155 employees.
“We regret the impact on our skilled and dedicated employees and we will provide resources and support to ease their transition into new employment,” said Barry McLean, Canada Bread fresh bakery division president.
The company will be investing approximately $11 million to expand its Edmonton bakery to support increased tortilla production.
“These network changes support our focus on both cost reduction and future growth, by increasing our capacity utilization and expanding our production in the high-growth tortilla category,” McLean said.
Canada Bread plans to start winding down operations in Delta in mid-August and shut the facility’s doors by the end of November.
The company anticipates that the closure costs, including severance, decommissioning and asset write-downs, will be approximately $4.8 million.
Maple Leaf Foods was not available for comment at press time.