March 15, 2011 / 9:39 PM / 7 years ago

UPDATE 1-Canada Bread to close facility in British Columbia

* To close fresh bakery facility in Delta, British Columbia

* Says to take pretax charge of about C$4.8 mln

* Says closure to affect about 155 employees

* To invest about C$11 mln to expand bakery in Edmonton for tortilla production (Follows alerts)

March 15 (Reuters) - Canada Bread said it will close a fresh bakery facility in British Columbia to cut costs and expand production in the high growth tortilla category, and it will take a related pretax charge of about C$4.8 million ($4.9 million).

Canada Bread, which is 90 percent owned by Maple Leaf Foods Inc , expects to close the facility, which employs about 155 people, on Nov. 30.

The company employs about 7,500 people at its operations across North America and in the UK.

Canada Bread, which sold its fresh prepared sandwich business last month to Premium Brands Holding Corp to focus on its core fresh bakery and pasta businesses, said it will invest about C$11 million to expand a bakery in Edmonton to support increased tortilla production.

Canada Bread said production will be consolidated at its other bakeries in Langley, British Columbia and Edmonton, Alberta.

Earlier in the year, Canada Bread had said it would close its frozen bakery facility in Laval, Quebec and take a related pretax charge of about C$5.8 million.

Shares of the Toronto-based company closed at C$45.75 on Tuesday on the Toronto Stock Exchange.

$1 = 0.974 Canadian Dollars Reporting by Arnika Thakur; Editing by Maju Samuel

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