Arla Foods is to shake up the production of its fresh dairy brands in the UK with a programme that will see the dairy giant close a creamery in Yorkshire.
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The company has decided to shutter the site in Northallerton, north Yorkshire and switch cream production to its facility in Stourton.
The proposed closure of the Northallerton site will result in the loss of around 130 jobs, although an Arla spokesperson said the affected staff would be offered positions at the expanded Stourton site.
Under the plans, Arla has earmarked GBP70m (US$100.2m) of investment in the Stourton facility, which will be expanded to process products including fresh cream and cottage cheese.
“The Northallerton site is surrounded by rail lines and there is no land for expansion,” the Arla spokesperson told just-food today (30 January).
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By GlobalDataThe investment in the Stourton site, which also processes Arla’s milk brand Cravendale and milk for the UK’s major supermarkets, would allow the company to “maximise growth from core added-value products” like cream, the spokesperson said.
“It also gives us a new platform to produce cottage cheese,” she added.
