McGhee’s announces expansion plan at site
MCGHEE’S Bakery has signalled its intention to build its export and frozen food business after revealing plans to invest £3 million in its Glasgow production facility.
The family-owned baker has targeted growth of 10 per cent this year as it extends its premises at the M8 Food Park by a third.
The expansion, which is scheduled for completion in spring next year, comes in the year the Port Dundas-based firm celebrates its 80th anniversary.
McGhee’s hopes the investment will lead to as many as 50 new jobs at the site. It currently employs about 236 st aff across its operations in Glasgow, Kilmarnock and Motherwell.
The company is in the process of applying for a Regional Selective Assis- t ance (RSA) grant of £500,000 for the project, with the bulk of the funding coming f rom its own resources.
Managing director Gordon McGhee said: “The business has enjoyed strong growth following our move to the M8 Food Park 10 years ago and we are fully focused on building our reputation and offering.
“Our significant investment in extending the bakery will help us consolidate and expand that offering to customers, in particular the export market and frozen food sectors.”
Mr McGhee, who runs the business with brother Stuart and cousin Ian, is lo ok i ng to bu i ld t he McGhee’s brand around Europe and in North America.
It recently exported a batch of caramel shortcake to a customer across the
Atlantic and he said the extension would give the firm, which has received £18m of investment since its current Glasgow bakery was built 10 years ago, the capability to take its frozen products further south in the English market.
McGhee’s customer base ranges from catering outlets in university cafes and staff canteens to small and large supermarkets, with its output covering the “whole spectrum of bakery products.”
“It’s finding the right product to go into the right area,” said Mr McGhee.
McGhee’s expansion plans have been announced shortly after the firm won a hat-trick of titles at the recent Scottish Baker Awards, including Scottish Baker of the Year.
It was the fir st time McGhee’s had lifted the coveted title. Mr McGhee said the win was “beyond everyone’s expectations”.
“It’s a superb result for the business and testament to the hard work, craft and dedication of the whole team across all sites,” he said.
McGhee’s latest accounts show it turned over £23.4 million between July 28, 2013 and August 2, 2014, up from £22.2m. Profit before tax was broadly unchanged at £1.4m.