TORONTO – Canada Bread will close two baking plants in Grand Falls, N.B., and Edmonton, Alta., during the year. The company said the closings will improve efficiencies by reducing overhead and the rationalization of lower margin products.
The Grand Falls plant manufactures a variety of cake products, sweet goods and English muffins. The production of cake products and sweet goods will be discontinued while English muffin production will be shifted to another plant. Approximately 75 employees will be affected by the closing, which is scheduled to take place on June 28.
The Edmonton bakery produces raisin and garlic bread as well as a variety of food service products. Production will be shifted to other Canada Bread bakeries when the plant closes on March 30. Approximately 46 employees will be affected by the closing.
“We must adapt to food inflation and rising costs by further lowering our cost structure and improving operating efficiencies,” said Richard Lan, president and chief executive officer. “We deeply regret the impact this decision has on our people and we will do everything we can to ease their transition to new employment.”Closing costs to be incurred in 2013, including severance, decommissioning and asset write-downs, are expected to amount to approximately C$6.3 million before tax, C$4.3 million of which is cash expenses, the company said.