Canada Bread to Invest in Bakery Plant

Canada Bread will invest nearly C$100m ($97m) to build Canada’s largest bakery facility in south-western Ontario.

The 370,000ft2 plant will replace three existing Toronto-area facilities, which will eventually be closed.

Production from the three plants will be transitioned over a two-year period with the first bakery expected to close in late 2011, the company said.

The second and third plants will be shut down in early 2012 and 2013, respectively.

A location for the facility is expected to be announced by the end of March and Canada Bread expects the first production in 2011.

The bakery firm said in addition to the C$100m investment, it expects to incur restructuring costs of about C$25m, which includes C$5m in non-cash items.