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Grupo Bimbo’s reshaping of its manufacturing network in North America continues with the closure of another site in Canada.
In May, the Mexico-based bakery giant announced plans to close a facility in Lévis in Québec.
The Dempster’s brand owner has now turned its attention across the St Lawrence River and is shutting a factory in Québec City by the end of the year.
In a brief statement, Marie-Ève Royer, the president of Bimbo’s operations in Canada, said it was “a difficult decision”. The site employs over 140 staff.
“By consolidating and continuing to make significant investments in our operations, we will ensure the long-term sustainability and growth of our business,” Royer said.
Bimbo is also making changes to its manufacturing south of the border in the US. This year, it has set out plans to close three sites in the country – two in New York state and one in Texas.
Meanwhile, media reports this week in Spain said Bimbo had announced a move to close a factory in the city of Valladolid. Investment Monitor has approached Bimbo for comment.
Last week, Bimbo-owned Canadian subsidiary Canada Bread said it was seeking damages against Maple Leaf Foods over a fine it incurred in a price-fixing case investigated by the country’s competition authority.
Canada Bread has filed a legal claim in an Ontario court against meat producer Maple Leaf Foods, which sold the business to Mexico’s Grupo Bimbo in 2014 before pricing irregularities emerged. Maple Leaf Foods is contesting the claim.
Further down the Americas, earlier this month Bimbo added to its position in Brazil with the acquisition of local bakery group Wickbold.
As part of the deal, the company is picking up four more factories in southern Brazil.
A year ago, Bimbo snapped up Canadian rye-bread producer Natural Bakery.
Set up in 1957, Natural Bakery supplies a range of rye breads, such as Canadian, European, Hanover and Baltic variations.
Natural Bakery moved to new premises in Winnipeg in 2007 and also operates a retail bakery.
"Grupo Bimbo’s closures again take in Canada" was originally created and published by Investment Monitor, a GlobalData owned brand.
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