Hostess Brands is investing $120 million to $140 million to transform a 330,000-sq-ft idled factory in Arkadelphia, Ark., into a next-generation bakery. The company’s decision to renovate an existing building is reducing its costs for a new facility and minimizing its environmental impacts.
The state-of-the-art bakery, which is expected to be operational in the second half of next year, will increase the company’s capacity across its bakeries on its Donettes and cake platforms by approximately 20%. It will also enable the company to accommodate production growth in the future and will create approximately 150 new jobs over the next three years.
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“We’ve been profitably gaining market share across the snacking categories in which we compete,” says Andy Callahan, president and chief executive officer of Hostess Brands. “The addition of this new bakery signals our confidence that we expect the growth we have demonstrated over the last several years to continue.
“We are emphasizing a sustainability-first approach to this project, while leveraging best practices from across our network of bakeries, and we anticipate this bakery will be our most efficient and greenest operation yet,” adds Callahan. ‘We are grateful for the help and support that we received from the city of Arkadelphia and the Arkadelphia Alliance, Clark County, the state of Arkansas, and the Arkansas Economic Development Commission, and the partnerships we have entered into with these entities. We look forward to welcoming new team members to our newest bakery when it becomes operational in 2023 and to becoming a part of the Arkadelphia community.”
