Around 65 dairy jobs will be cut in the UK with the sale of Arla Foods-owned Claymore Dairies next month.
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Claymore Dairies, in which Arla owns a 75% stake, will be bought by management at the Nairn facility, for an undisclosed sum.
The management buyout is expected to be completed by 1 February.
As part of the deal, Arla will switch some of its production to Lockerbie and open a distribution hub in Dundee to service its Highland customers.
Lars Dalsgaard, Arla’s supply chain business group director, said: “The viability of the site has been under review for some time. The site’s management team approached us about the possibility of them leading a management buyout of part of the business from Arla.”
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By GlobalDataHe added: “After considering the team’s proposal, we came to the conclusion that an MBO was the best solution for all parties. Unfortunately, subject to the consultation process, the decision could lead to a number of redundancies but we believe that the buyout will secure the future of the site and the remaining jobs.”
Under the deal, North Milk Co-op, a group of dairy farmers that owned 25% of Claymore, will supply Arla and the Nairn dairy.
Ian Larg, operations director at Nairn dairy who led the management buyout, said: “We believe that there is a strong appeal in the area for locally-produced and processed milk. Our proposals, which include the setting up of a new company, will secure many of the jobs at the dairy and also the future of the site.”
