UK—Brace’s Bakery has invested US$ 4.9 million in a new production line thanks to a US$ 3 million finance package from HSBC UK and HSBC Equipment Finance, meanwhile, Greggs bakery has secured planning permission for an expansion of its Newcastle factory.
The new production line which will manufacture bread rolls, tea cakes and hot cross buns, will allow the fourth-generation business based in the Eastern Valleys of South Wales to produce up to 16,000 rolls an hour, adding to the 1 million products produced and bought weekly in supermarkets and shops in the region.
Commenting on the investment, director Jonathon Brace said: “Since installing the new production line, we are now in a position to expand our volumes and offer a wider range of roll products to include tea cakes.
“We’re thankful to Sian Williams and Scott Ritchie at HSBC UK for their continued support in the expansion of our business and for making the process as seamless as possible for us. Since the production line was installed in January up until Easter, we managed to produce nearly 2m packs of six hot cross buns.”
Operating since 1902, Brace’s Bakery supplies to all major supermarkets in South Wales and the West of England with its own brand of bakery products. It hoped the investment would allow the brand to expand into new markets.
Meanwhile, high street baker Greggs receive approval from North Tyneside Council for a development that would bring 125 jobs to the region and support the opening of 800 new UK stores.
The baker has been given the go ahead to convert a freezer and goods store at its Longbenton, Newcastle site into extra production space.
A statement from Greggs sent to the council said the facility made the majority of savory products for the business but by the end of 2023 sales and shop growth would exceed current supply.
“We have therefore decided to expand operations at Balliol with the introduction of a fourth production line, which will increase site output by around 30%,” the statement read.
Greggs is the largest bakery chain in the United Kingdom, with more than 1,600 shops. The company was founded by John Gregg in 1939 when he started delivering eggs and yeast on his pushbike to families in Newcastle upon Tyne.
Following the death of his father, Ian Gregg took over the family business in 1964 and under his leadership, Greggs has expanded throughout the UK.
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