The bakery is due to close by the end of September 2005

Up to 50 people will lose their jobs under the proposal to close Carricks Bakery, in Newcastle.

The announcement came as part of the company's plans to invest in its bakery production and distribution operations in the region.

It plans to streamline operations and focus production at its Gosforth site and open a new distribution facility.

Plans to close Carricks will go through a consultation process and it is expected to take place by the end of September 2005.

Employees' loyalty

Greggs said it aimed to minimise the impact by moving the workers to new roles with the company locally, but it expected the closure to mean up to 50 job losses.

A company spokesman said: "We very much regret the need to close Carricks Bakery.

"This in no way reflects the loyalty or hard work of our employees there.

"The proposal is necessary to ensure our shops can be even more efficiently served in the future and to help deliver our ambitious expansion plans in the North East."

It said consultation would start straightaway and there would be one-to-one discussions with affected employees about their futures.

The company, which employs 3,000 people in the region, said it was also trying to find a further potential development in the area to increase its savoury production.