Mondelēz Canada has announced plans to close its Lakeshore Bakery in the West End of Toronto in the third quarter of 2013 with 550 jobs hit.
The 625,000 square-foot facility has produced cookies and crackers since 1948. Mondelēz biscuit brands include LU, Nabisco and Oreo.
Alvaro Cuba, vice president of operations for Mondelēz Canada, said: "This is a difficult decision, given the role this facility has played within our organization and in the community for 64 years. However, the plant faces some unique challenges resulting from the changing neighborhood surrounding the facility.”
"While this was an appropriate location for a large bakery when it was first built, the significant residential development surrounding it has led to operating constraints that will become increasingly difficult with the further residential expansion that is underway,” continued Cuba.
“With the facility's aging infrastructure, and underutilized manufacturing capacity, further investment is not a viable option. Therefore, we have determined it is best to close the facility because it no longer supports our strategy of making the most efficient use of our manufacturing asset,” he said.
Mondelez will move part of its Lakeshore bakery production to bakeries in Montreal and East York. The rest will be divided between North American biscuit production facilities and co-manufacturers.
The 550 employees working at the plant were informed yesterday. The decision comes one month after global snacks business Mondelez International was inaugurated after spinning-off from Kraft Foods.