Extra £45m for Manor, but plants close

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RHM-owned Manor Bakeries is closing some of its cake-making facilities in a bid to cut operating costs and eliminate overcapacity.It will close its...

RHM-owned Manor Bakeries is closing some of its cake-making facilities in a bid to cut operating costs and eliminate overcapacity.

It will close its Eastleigh factory near Southampton by December 2005 and reduce the number of plants at its Moreton factory on Merseyside from four to two. Manor also proposes to close its transport and garage operation.

However, investment to expand capacity at Manor's Carlton and Stoke factories is expected to create around 350 jobs, bringing net job losses to around 330.

RHM is to invest £45m over three years in marketing and product development at Manor to support its Mr Kipling and Cadbury cake brands. "The actions ... are in line with our strategy of investing in key brands," said Manor chief executive Ian McMahon.

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