Kingsmill owner Allied Bakeries is to axe all bakery production at its Cardiff site.

The business has confirmed it will go ahead with plans that were announced in June to end bakery operations at the facility.

While Cardiff will continue to be used as a distribution centre, almost 180 staff, in roles ranging from management to operations, will be made redundant as a result.

The decision follows a review of the business after it lost a contract to supply own-label bread to Tesco. Allied has been making a loss for a number of years, although owner Associated British Foods said losses were expected to be reduced in the coming year.

In recent months, Allied has also announced the departure of managing director Jon Jenkins, with the business switching to a joint leadership structure under Liam McNamara and Nick Law.

“In light of highly competitive market conditions and following the loss of a major own-label contract earlier this year, the business reviewed a number of options to improve efficiency across its UK bakery network,” an Allied Bakeries spokesperson said this week.

“This process concluded that re-allocating the Cardiff bakery output into Allied Bakeries’ wider network was the most effective way of responding to these challenges.”

The company added that those impacted would be offered an “enhanced redundancy package” along with support to help find other jobs either locally or at another Allied Bakeries site in the UK.

Britain’s baking industry has seen a string of similar announcements in recent months, including the closure of Warburtons’ bread bakery in Newburn, and of Addo Food Group’s bakery in Spalding.