The Pen-Y-Fan factory only has one production line but its Croespenmaen site, which has two sliced bread plants, and makes Welsh cakes, rolls and artisanal products, will stay open and will be able to fulfil all its market demands, the company said.
The majority of its 200 staff will be moving across to Croespenmaen and there are expected to be less than 20 redundancies.
The company reassured its customers that it would see no change in the products they receive.
Brace’s director Jonathan Brace said: “The bread market has changed dramatically in the last 18 months with people moving away from standard sliced breads, the whole of the industry is feeling the consequences of a declining market with Morrison’s closing their Rathbones sliced bread bakery, also the proposed merger of Allied Bakeries and Hovis and Robert’s Bakery going into administration.”
He also highlighted the challenging market with rising costs such as wages, gas and electricity and the increase in National Insurance that have all added to the market pressures.
He added: “We see this as a reset of the business, which gives us the opportunity to meet the new market demands head on.
“To be able to continue in this market we need to right size the business for the future.”
Brace’s family has been baking in the Welsh Valley’s for 123 years. Brace said the has “big plans” with new product launches expected and new customers in different areas of the bread market which it hoped would “secure the long-term future of the business”.
This news comes as the bakery sector has seen a tumultuous month with Roberts Bakery parent company Frank Roberts & Co being saved by private investment enterprise, Boparan Private Office, owned by entrepreneur Ranjit Singh Boparan.
The news followed Roberts Bakery announcing that it was preparing to enter administration.
Warburtons also revealed it has acquired the Ilkeston factory from Roberts Bakery.
