Canada Bread to open big new plant in Hamilton; replaces 3 in Toronto

[Hamilton] This city is a great location to support our continued growth with a skilled workforce, excellent infrastructure, and ready access to markets. These benefits collectively led to our decision."

Canadian Press
February 18, 2010

Canada Bread to open big new plant in Hamilton; replaces 3 in Toronto
Canadian Press

TORONTO — Canada Bread Co. Ltd. (TSX:CBY) picked Hamilton on Wednesday as the site for its massive new bakery.

The company said the move will create up to 120 construction jobs and up to 300 jobs once the plant is completed next year. We are very pleased to be growing our presence in Hamilton through this $100-million investment to establish a world-class bakery facility," said Canada Bread president Richard Lan.

This city is a great location to support our continued growth with a skilled workforce, excellent infrastructure, and ready access to markets. These benefits collectively led to our decision."

The company said the bakery will be built on a 10-hectare property in North Glanbrook Industrial Park. The company and the City of Hamilton are working to complete the permitting process and expect construction to start in June.

Canada Bread already employs approximately 340 people at its Fresh Bakery and Olivieri pasta facilities in Hamilton.

Hamilton Mayor Fred Eisenberger said the city was successful because of the efforts of its economic development board in emphasizing its location, existing infrastructure and skilled workers.

We're ideally situated and have the assets that are important to their business," he said. If it works for them, we expect it will work for others."

The federal government will also provide $2 million towards pre-engineering and design activities to build the new bakery.

Speculation has been rife over where the plant might go since the announcement last month that Canada Bread was looking for a site outside Toronto to replace three smaller bakeries, which it described as aging and unable to expand.

Officials said at the time they hoped to find jobs for the 435 Toronto bakery workers either at the new plant or elsewhere at Canada Bread or its parent, Maple Leaf Foods Inc. (TSX:MFI).

Canada Bread shares closed up 49 cents at $52 apiece on the Toronto Stock Exchange, while Maple Leaf shares finished up 15 cents at $11.50.

Copyright © 2010 The Canadian Press. All rights reserved.

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