A GWENT bakery has invested £10 million in a new plant that will double its production capacity.

Brace's Bakery opened the plant on the Pen-y-Fan Industrial Estate - just a mile from its existing plant and headquarters in Croespenmaen.

Fully automated, the plant has the capacity to produce 120,000 white loaves a day. Brace's bought the new base a year ago and has been installing machinery since then. Production of Welsh cakes and all speciality lines will remain at Croespenmaen.

Sales and marketing director Scott Richardson said the new plant, which employs 100 people, will enable the company to continue its ambitious expansion plans.

"The original plant at Croespenmaen is still very much up and running but we found we simply didn't have the capacity to respond to the demands of our rapidly increasing customer base," he said.

"As with all businesses, investment is the key to progression and ultimately success and we have invested heavily in order to pave the way for further developments - both in the geographical areas that we serve and also to our product ranges."

The new manager for the plant is Richard Mynott, who is relocating to the new unit after working as human resources manager at the Crumlin base since 2001.

In the last four years, Brace's has seen its turnover double to £19 million. It has also increased the core geographical spread of its consumer base to incorporate the South West and an area across the southern M4 corridor.

And it has also opened three new depots in Plymouth, Southampton and in Kent to distribute to new customers including Spar, Tesco and Asda. Islwyn MP Don Touhig said: "Brace's Bakery is a true valleys success story.

"Over 100 years it has grown from a small family business into a major player in the local economy and this is a real tribute to the generations of the Brace family and the dedicated workforce.

"This latest announcement shows that our home-grown businesses are able to compete with the best."

Local councillor Keith Lloyd called the news "excellent" and said it heralded a bright future for industry in the area.

He added: "We've had so many disappointments over the years so it's good to see a company making such a strong commitment to the area."

Brace's was established in 1902 by George Brace, who opened a bakery in Pontllanfraith. He was an engine driver at the Cambrian Colliery in Rhondda, but after the mining disaster in 1905, in which 31 died, he devoted all his time to the business.