Bakery brings 300 jobs, feeds tax base
February 18, 2010
Emma Reilly
The Hamilton Spectator
http://www.thespec.com/News/Local/article/723871
A multimillion-dollar megabakery that will employ 300 people is coming to Hamilton.
Canada Bread announced yesterday it is building a $100-million, 375,000-square-foot bakery in the city's industrial park in Glanbrook.
The deal will create 300 permanent jobs, as well as an additional 120 spots during construction and 31 seasonal positions. It will also generate $1.1 million to $1.5 million in taxes annually and $2.5 million in development charges.
Mayor Fred Eisenberger made the announcement yesterday afternoon with MPs Dean Allison, David Sweet and Gary Goodyear, minister of state for science and technology, whose portfolio includes southern Ontario's Federal Economic Development Agency. Goodyear was on hand to announce a $2-million injection into the project for design and engineering support as part of the government's economic action plan.
Hamilton approached Canada Bread in December after the company announced it was looking for a new home in a municipality west of the GTA. The deal progressed quickly once Hamilton threw its hat into the ring, said Tim McCabe, general manager of planning and economic development.
"We had our first meeting in January and we wrapped the deal up a week last Monday," McCabe said.
Council unanimously approved the land sale at a special closed-door meeting just before the announcement. It was the first some councillors had heard of the plan.
Hamilton was chosen from among several municipalities because of its Golden Horseshoe location, its skilled workforce and the park's proximity to major highways.
Ian MacPherson, Canada Bread's vice-president of human resources, also said the company is familiar with the city as it operates two other factories here, on Nebo Road and in Stoney Creek.
"The choice to locate in Hamilton -- well, quite frankly, it was easy for us," MacPherson said.
The bakery will produce white and brown bread, rolls and tortillas, mostly Dempster's brand, on seven production lines. The first line will open next year, with all seven fully operational by 2012.
The company will close its three aging bakery operations in Toronto to consolidate its operations under one roof in Hamilton. The 500 employees at those plants will be offered spots in the Hamilton facility first. The remaining jobs are expected to be filled by local residents. The average income will fall between $45,000 and $65,000.
Canada Bread will become the first business in the North Glanbrook Industrial Park, which, now that it has its first tenant, will be renamed the Red Hill Business Park.
The 25-acre patch of land purchased from the city by Canada Bread is in the same spot its parent company Maple Leaf pursued back in 2005, though that deal was for 55 acres. Maple Leaf walked away from its proposal for a $250-million pork plant after seeing a lack of political and community support.
The cost of the land deal was not disclosed.
Eisenberger said he doesn't expect the same type of community opposition this time around.
"That was then, this is now," said Eisenberger. "We've developed a great relationship with this company, and it's all worked out very spectacularly."
The city now hopes the Red Hill Business Park will become a hub for food production. Canada Bread has already told the city their suppliers will be interested in locations close to the bakery.