First Milk will build a cheese-making facility following a collapsed deal with Tesco

First Milk will build a cheese-making facility following a collapsed deal with Tesco

A total of 100 jobs across 38 farms are safe after UK dairy co-operative First Milk announced a new cheese-making facility in Campbeltown on the Mull of Kintyre.

First Milk said the new site will allow for increased production and provide processing efficiencies that cannot be achieved at the current plant.

The co-op was in talks to sell the site to Tesco and relocate to a new location in the town but these plans fell through. The new facility will get GBP2m of funding from the Scottish government.

First Milk chief executive Kate Allum said: "Throughout this process we have remained absolutely committed to our farmers on Kintyre, to the creamery and to the development of our world-famous Mull of Kintyre brand.

"With that in mind, we will invest in a brand new cheese-making facility at our existing site, aided by grant support from the Scottish government.

"We have met with farmers and employees in Campbeltown to inform them of these developments, and agreed to work as one team alongside the Scottish government to develop a long term sustainable future for the dairy industry on Kintyre."