Area bakery gets $5.5M from state to create 31 jobs

Hearth Grains Bakery LLC in Springboro — working for Klosterman Baking Co. Inc. — will get more than $5.5 million from the state of Ohio for a state-of-the-art production line, the state Department of Development said.

The loan is from the Ohio Enterprise Bond Fund, and the project is expected to create 31 jobs, the state said.

The baking line will be used for the production of flat-bread products, including sandwich thins and bagel thins , the department said.

Bethany McCorkle, a spokeswoman for the Ohio Department of Development, said the Springboro location has 46 employees . The site typically makes buns for McDonald’s and Bob Evans restaurants and for colleges and universities, she said.

The production line will be used to make products for Kroger in a partnership with the grocer, she said.

The loan, made in the form of a taxable bond, is expected to be paid back, as all Ohio Enterprise Bond Fund loans are, McCorkle said.

The Cincinnati-based company has a Springboro production site at 350 S. Pioneer Blvd. A spokeswoman for the company declined comment.

Klosterman is one of the largest family owned bakeries in the Midwest, employing more than 500 people, and producing more than 400 varieties of baked goods, the state said.

Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.

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