Australia’s largest bread manufacturer, Goodman Fielder, is seeking approval from regulators to establish a supply agreement with it’s biggest competitor, George Weston Foods, after announcing a spate of job cuts, according to Farm Online National.

Approximately 215 jobs will be cut nation-wide as Goodman Fielder heads into a commercial supply agreement with George Weston to manufacture its bread products, including brands Wonder White, Helga’s, Molenberg, Lawson’s and Mighty Soft.

Goodman is seeking permission from the Australian Competition and Consumer Commission on the partnership, as the two companies have previously been competitors.

Goodman Fielder is owned by Singapore-based food company Wilmar International and Hong Kong-based investment company First Pacific. George Weston is owned by Associated British Foods and makes Tip Top, Burgen and Abbotts bread.

A number of Goodman Fielder’s production facilities have closed in recent years due to rising costs and declining returns in the $2 billion bread market, as major supermarkets reduced the price of their house brand bread, as well as ramped up production of in-store bakeries.

Goodman Fielder managing director Julie Coates told Farm Online National the company is consolidating their manufacturing network and investing in larger capacity sites to create a more sustainable business for the long term.