Arla Foods has announced plans to invest £90m on an upgrade for its Lockerbie plant to create a new UHT milk centre of excellence.
The move would enable Arla to further “future-proof its UK production”, it said, following a £300m investment in its UK manufacturing base last year – including £34m at the Lockerbie site’s cheese operation.
The dairy co-op is proposing shifting all UHT production to the site from its Settle site in North Yorkshire and Stourton operation in Leeds. Arla said the change would “create new roles in the local area” around Dumfries and Galloway town Lockerbie.
But as a result of the investment at Lockerbie, it is also proposing to close the Settle site and cut jobs at Stourton. Arla said it would enter into “a collective consultation period with all colleagues impacted by today’s proposal”.
“The proposals announced today form part of our strategy to strengthen our manufacturing network and future-proof dairy production in the UK, and whilst this is an exciting announcement for Lockerbie, our priority right now is to support our Yorkshire colleagues,” said Arla Foods VP of production Fran Ball.
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“We are committed to supporting everyone through periods of change and we understand that this will be a time of uncertainty for colleagues who work across our Yorkshire sites.”
Up to 120 jobs could be under threat at the Settle site, which is due to be mothballed before closing in 2027, said trade union GMB. It added the proposed closure was “a devastating blow” that would have a “significant economic and social impact” on the local community.
The proposed investment into Lockerbie “showcases our commitment to driving change in the UK, and supporting the future of British dairy”, said Arla UK MD Bas Padberg.
“There is an increasing focus on the role the UK food industry plays in helping to tackle the health crisis and provide good food to nourish a growing population. We are aware this proposal has the potential to impact colleagues across some of our UK sites, and our priority is to support them through this challenging time.”
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