Manchester-based GH Sheldon plans to boost sales with the supermarkets and expand into other channels after investing nearly £4m in a second bakery.

The family-run firm, which supplies oven-bottom muffins, hot cross buns, balm cakes and batons to the major multiples, has doubled capacity by buying and refurbishing a building opposite its original site in Openshaw. The move doubles the number of staff at the firm to over 200 and has involved the installation of three new lines. These include two bespoke travelling ovens, as well as plant for making speciality breads.

Established in 1949 by Harold Sheldon, the firm is now run by his son, MD Graham Sheldon, and his wife Barbara. Their children, Lee and Sarah, are company directors. "The new bakery gives us the flexibility to increase sales with our existing customers and look to grow other channels," said Sarah Sheldon.

Graham Sheldon added: "We have worked hard to build our reputation over the last 50 years, and this expansion will ensure that we remain at the forefront of baking in this country for decades to come."

The Co-operative Bank helped finance the expansion.