Feb 3 - Arla Foods has announced that it is to invest more than GBP 70 million in additional state of the art production facilities at its flagship dairy in Stourton, Leeds.
The investment will allow Arla to expand production at the site to process a range of fresh dairy products, including fresh cream and Crème Fraîche and will allow Arla to manufacture cottage cheese for the first time in the UK. Around 100 new jobs will be created through the investment which reflects Arla’s strategy to maximise growth of value added products. To date, Arla has invested £100 million at Stourton dairy, which processes milk for the major supermarkets as well as leading milk brand, Cravendale.
Building work has already begun at the site and is due to be operational early in 2010. The increased production capacity will not only allow Arla to extend its range of dairy products, it will also increase efficiencies across the business.
Arla intends to transfer cream production to Stourton from its creamery in Northallerton, North Yorkshire, and has informed employees at Northallerton creamery of the proposed closure of the site, subject to consultation, during 2010, resulting in the loss of around 130 jobs.
Commenting on the decision to close the creamery Lars Dalsgaard, Arla UK’s Business Group Director for Supply Chain, added: “While the investment at Stourton is a positive step for the business by extending our product portfolio, and at the same time increasing our efficiencies, it is with much regret that we have announced the proposed closure of a site which has been strategically important to us.
“We are immediately entering into consultation with colleagues at Northallerton, and their representatives and are committed to giving full support to those colleagues who are affected by today’s announcement to help them find alternative employment both internally and externally, subject to the consultation process.”