Work has started on a new £16 million bakery for Greggs in east Manchester.

The construction of the 75,000 sq ft building on Parkhouse Street in Openshaw has been made possible through a joint initiative between Manchester City Council, New East Manchester and Greggs assisted by a £7 million grant from the North West Regional Development Agency (NWDA).

The relocation to the new site will also lead to the development of many higher skilled jobs within the new bakery and the expansion of employment within local shops, all of which are supplied daily by Greggs Bakeries.

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Ian Pegg, Managing Director of Greggs North West commented: "Greggs is hugely committed to the North West and the start of work at the new bakery is a milestone in our regional expansion strategy. We are delighted with the progress to date."

Eddie Smith, Chief Executive of New East Manchester said: "It's great to see this new facility start to take shape. Greggs is a major local employer and this brand new building acts as a symbol of the company's commitment to the area. This is an excellent example of joined-up regeneration where the public and private sector work in partnership for the benefit of the local community."

The building is due to be completed in September 2008.

(CD/JM)