Food and Beverage Business
Finance

Bakery run by Grupo Bimbo to shut down operations in the US

grupo bimbo

Grupo Bimbo, a Mexican bakery giant, has made the decision to cease operations at a factory in Nebraska by early July. The Bellevue facility, which produces bread and buns and employs 172 people, was deemed unsuitable for the company’s growth plans following a recent assessment.

According to a statement from local subsidiary Bimbo Bakeries USA, production will be shifted to other bakeries in the company’s manufacturing network. This move was described as difficult by Marco Espinoza, senior director of regional operations, due to the dedicated teams and community connection at the Bellevue Bakery. However, after careful analysis, it became clear that the facility lacked the necessary infrastructure and manufacturing capability to remain competitive in the marketplace.

In related news, Bimbo recently announced the closure of a facility in Canada, with a plan to shut down the bakery in Lévis, Quebec, leading to job losses for 95 employees. Additionally, the company expects to reduce its capital expenditure in 2024, as stated by CFO Diego Gaxiola during a discussion of the first-quarter financial results. Looking ahead, Bimbo anticipates a slight decrease in capital expenditure for 2025, with a potential return to normal levels by 2026.

In leadership changes, chief operating officer Rafael Pamias has been appointed as the new CEO, taking over from Daniel Servitje, who served as Bimbo’s CEO since 1997. Pamias assumed the position on 1 May, marking a significant transition in the company’s leadership.

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