Maple Leaf subsidiary Canada Bread has announced that its new C$100 million mega-bakery will be in Hamilton, Canada.

Speculation has been rife over where the plant might go since the announcement last month that Canada Bread was looking for a site outside Toronto to replace three smaller bakeries, which it described as ageing and unable to expand.

The company said the 375,000 square foot bakery will be built on a 10-hectare site, creating 300 jobs. Construction will start in June and the first production lines are due to be commissioned 12 months later. The Toronto bakeries will close by the end of 2013.

Canada Bread already employs approximately 340 people at its Fresh Bakery and Olivieri pasta facilities in Hamilton.

“We are very pleased to be growing our presence in Hamilton through this investment to establish a world-class bakery facility,” said Canada Bread president Richard Lan.

Canada Bread Company is 89.8% owned by Maple Leaf Foods which operates across North America and in the United Kingdom.