CANADA—Grupo Bimbo, the world’s largest bakery company based in Mexico, is undergoing significant changes to its manufacturing network, including closing a facility in Québec City, Canada.
This decision follows the earlier announcement in May regarding the shutdown of a plant in Lévis, Québec. The latest closure will affect over 140 employees and will take place by the end of this year.
Marie-Ève Royer, president of Bimbo’s operations in Canada, described the decision as “a difficult one,” emphasizing the company’s commitment to long-term sustainability.
“By consolidating and continuing to make significant investments in our operations, we will ensure the long-term sustainability and growth of our business,” she stated.
This move is part of a broader strategy to enhance productivity and efficiency in the company’s operations across North America.
The closures are not limited to Canada; reports indicate that Grupo Bimbo plans to shut down a factory in Valladolid, Spain.
This expansion of closures reflects the company’s ongoing challenges as it navigates fluctuating market conditions and strives to maintain operational efficiency.
In addition to these closures, Grupo Bimbo is adjusting its manufacturing footprint in the United States.
This year alone, the company has announced plans to close three sites: two in New York state and one in Texas.
Similar motivations drive these decisions as those behind the Canadian closures—improving operational efficiency and reducing costs while ensuring customer product quality.
Last week, Bimbo’s Canadian subsidiary, Canada Bread, initiated legal action against Maple Leaf Foods over a fine related to a price-fixing investigation by Canada’s competition authority.
The lawsuit was filed in an Ontario court and seeks damages stemming from irregularities that emerged after Maple Leaf sold Canada Bread to Grupo Bimbo in 2014.
Maple Leaf Foods is contesting this claim, adding another layer of complexity to Bimbo’s current challenges.
Despite these setbacks, Grupo Bimbo is also pursuing growth opportunities. Earlier this month, the company expanded its presence in Brazil by acquiring local bakery group Wickbold, which includes four additional factories in southern Brazil.
This acquisition follows last year’s purchase of Natural Bakery, a Canadian producer known for its rye bread varieties.
Grupo Bimbo’s recent actions highlight a dual approach: while it consolidates operations to streamline costs and enhance productivity, it simultaneously seeks growth through strategic acquisitions.
The company remains focused on maintaining its position as a leader in the global bakery market despite facing significant operational challenges.
As these changes unfold across various regions, Bimbo’s commitment to its employees remains a priority.
Royer reassured affected workers that efforts would be made to assist them during this transition.
“I will personally ensure that we do everything possible to ease the impact on our people and encourage them to seek employment at other Bimbo Canada facilities that are hiring,” she affirmed.
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