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The facility at Gosforth will supply around 200 Greggs stores across the North East and Cumbria.
The new site brings the number of production facilities held by Greggs to ten.
According to the Federation of Bakers, a trade body representing the UK bakery industry, large bakery manufacturers produce around 80% of bread sold in the UK, while in-store bakeries within supermarkets produce around 17%.
High street retailers account for just 3% of total production.
