Premier Foods has announced a £20m investment to double capacity at its cake manufacturing site in Carlton, Barnsley.
The money will be used to build a new production and packing line at the site at Fish Dam Lane. It is hoped that it will be capable of producing 300 million cake slices a year.
This would double the company’s current capacity, aiming to meeting consumer demand for its Snap Pack format of individually wrapped slices.
The investment will take 12 months to complete, and will involve the installation of a mixing station, oven and packing robotics “adding significant volume to the site”, according to Premier Foods.
Jason Ramsay, factory general manager for the Carlton site, said: “This investment is a strong vote of confidence by Premier Foods in the Carlton site and the Carlton workforce. We have been manufacturing Mr Kipling cakes at Carlton since 1975 and this latest news is a huge boost for all of us.”
Mr Kipling Snap Packs were introduced in 2011 to provide a convenient, on-the-go format suitable for lunchboxes and in-home eating occasions.
Meanwhile, private equity firm Gores Group is believed to be casting an eye over Premier Foods’ Hovis division.
In November last year, the company confirmed the appointment of Ondra Partners to look at its options for investment into the bread brand.
A spokesperson for Premier Foods refused to comment on reports that Gores Group could acquire Hovis.