Allied Bakeries, the UK bread arm of Associated British Foods, will end production at its Gateshead site, leaving at least 119 jobs at risk.
The company said “excess capacity” at the plant was the reason why it will end production at the facility next February.
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The site currently employs 263 people, with 119 workers facing potential redundancies. Allied Bakeries distribution and transport depot operations based at the Gateshead site are unaffected.
Allied Bakeries regional general manager Pat Love said: “The potential closure of manufacturing at Gateshead has been an extremely tough decision and in no way reflects the commitment and efforts of all those who are currently working there.”
“Our announcement is in response to the highly competitive nature of the market we operate in, the level of investment needed to bring the site to an acceptable standard, the need to strengthen our overall capabilities and our ability to respond to change in the future.”
The company’s said its focus is now working with the staff who will be affected by the proposal. Allied Bakeries is liaising with the local job centre and providing training and working with other local employers to help the affected staff fine alternative employment.
The Gateshead facility makes a range of sliced bread products.
