High street bakery chain Greggs has announced plans to axe its manufacturing operation in Birmingham to create a "logistics centre of excellence", placing around 140 jobs under threat.

In addition to running dozens of shops across the Birmingham area, the national chain also operates a manufacturing and distribution hub in Saltley.

The listed company has now announced plans to "reshape" the activities there and turn it into a warehouse which only distributes products to its network of shops, with the eventual aim of being able to supply 400 outlets in the region.

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A consultation with affected staff has now been launched.

A company spokesman refused to put a figure on the number of potential job losses at the base but one staff member told the Birmingham Mail they expected there to be around 140 redundancies with more details to be announced in March.

Last year, Greggs said it planned to invest millions into its supply chain but it was also closing three main bakeries - in Edinburgh, Twickenham and Lincolnshire - and closing up to 60 shops although a further 120 new outlets would open as part of a restructuring plan.

A company statement said: "Following the announcement in March 2016 regarding our planned £100 million investment in our supply chain over the next five years, we are now planning the next phase of this investment.

"This will increase and reshape our manufacturing and distribution capabilities and enable us to support shop expansion substantially with more than 2,000 shops, as we continue to compete effectively in the growing food-on-the-go market.

"We are not closing our site in Birmingham. Our proposal is the bakery is converted into a dedicated logistics centre of excellence for distribution only, with the capacity to serve over 400 shops.

"We have entered a period of consultation regarding the proposals with our people."

Watch: Festive pasty at Greggs

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