Looks like the much-loved neighbourhood institution the Weston bakery at Eastern and Logan will be closed (see paragraph 55, below) . A shame - I think we all love the wonderful smell of baking bread wafting over our neighbourhood - beats the odour of the sewage treatment plant! Any bets on how soon condos / townhouses spring up at that location?
News release via Canada NewsWire, Toronto 416-863-9350 -ME-
Attention Business Editors:
Canada Bread announces investment in Canada's largest bakery@
TORONTO, Jan. 12 /CNW/ - Canada Bread Company, Limited (TSX:CBY) today
announced it will invest approximately $100 million in its Fresh Bakery
operations to construct a new 370,000 square foot bakery facility in
southwestern Ontario. The investment reinforces the Company's strategy of
establishing competitive large scale facilities that provide a manufacturing
platform to support its innovation agenda and drive top line growth.
"This new bakery facility will be the largest in Canada and reflects our
commitment to investment and growth as Canada's leading value-added bakery
business," said Richard Lan, President and CEO, Canada Bread. "It will drive
significantly improved efficiencies in our manufacturing and supply chain,
providing the capacity to support organic growth and the growing needs of our
The design of the new facility will integrate modern equipment,
best-in-class technologies and sound environmental principles to ensure it
operates to the highest standards of operating efficiency, quality assurance
and environmental management.
The Company is currently investigating several potential locations for
the new facility and a final decision on the location is expected by the end
of March 2010. Construction is expected to commence within six months of
securing a location with the first production lines being commissioned
approximately 12 months later.
The Company will close its three existing bakeries in the Greater Toronto
Area which have aging assets that have been further constrained by urban
development and cannot support the business' long-term growth. Production will
be transitioned over a two-year period as operations at the three plants are
wound down, with the first bakery currently expected to close in late-2011,
the next in early 2012 and the third in early 2013. Employees will be given
opportunities to consider the 300 positions at the new facility or other
available jobs elsewhere across the Company's operations.
The total capital investment of approximately $100 million includes land,
building and equipment. In addition the Company expects to incur restructuring
costs totalling approximately $25 million, which includes $5 million in
non-cash items. These costs include asset decommissioning and severances, and
will be recorded in the Company's financial statements over the next three
Canada Bread Company Limited, which is 89.8% owned by Maple Leaf Foods
Inc. (TSX:MFI), is a leading manufacturer and distributor of fresh bakery
products, frozen par-baked products and fresh pasta and sauces. The Company
had 2008 sales of $1.7 billion and employs approximately 8,500 people at its
operations across North America and in the United Kingdom.
/For further information: Media Contact: Jeanette Jones, VP
Communications, Ph: (416) 926-2020; Investor Contact: Michael Vels, CFO, Ph:
CO: Canada Bread Company, Limited