Allied Bakeries to end production at Gateshead

18-Oct-2011 - Last updated on 19-Oct-2011 at 17:14 GMT

More than 100 jobs are at risk at Allied's Gateshead site

More than 100 jobs could be lost at Allied Bakeries’ Gateshead site after the firm confirmed plans to end production next February.

In March this year, the firm said it planned to close production on one bakery line and review the viability of its bakery operation Gateshead.

Distribution and transport depot operations at the site will be unaffected. But employees in the manufacturing and support departments are at risk of redundancy, said a spokesman.

A consultation has begun with about 119 affected staff at the site which employs 263 people.

Extremely tough

Pat Love, general manager, Allied Bakeries Northern Region, 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.

"Our focus now is working with those who are likely to be affected by the company’s proposal.”