Arla Foods has proposed the closure of its Settle facility as it invests nearly £90 million into its Lockerbie site in Scotland.
Alongside the £300 million site investments announced in 2024, which included £34 million investment into Lockerbie’s cheddar production, the food manufacturer has announced a proposal to further increase the investment in Lockerbie to enable it to future proof its UK production.
Arla is proposing to create a “Centre of Excellence” for the production of UHT and Lactofree milk at Lockerbie, which it said could create new roles in the local area. However, as a result of the investment proposals, there is a potential impact for some colleagues based at its Stourton site, and all colleagues at its Settle site, which Arla proposes to close. Arla said it will enter into a collective consultation period with all colleagues impacted by the proposal.
Speaking about the proposals, Fran Ball, vice president of production at Arla Foods, said: “The proposals announced today form part of our strategy to strengthen our manufacturing network and futureproof dairy production in the UK, and whilst this is an exciting announcement for Lockerbie our priority right now is to support our Yorkshire colleagues. At Arla 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. We will be entering into a period of consultation with everyone affected by these proposals, announced today.”
The news follows the announcement of Arla’s 2024 annual results.
Speaking about the proposals and the role dairy plays in consumers’ diets, Bas Padberg, managing director of Arla Foods UK, said: “The proposed investment into Lockerbie showcases our commitment to driving change in the UK, and supporting the future of British dairy. 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 that 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.”
Arla Foods UK board director, and Arla farmer, Arthur Fearnall, said: “We are incredibly proud to see this significant investment proposed for Arla’s Lockerbie site. We’re excited to see how this progresses over the coming years as we continue to work together to ensure all Arla farmer owners receive the best price for their milk.”
GMB Union calls closure a “devastating blow”
Deanne Ferguson, GMB Union organiser, said: “If Arla’s proposal to close goes ahead, it will be a devastating blow for the dedicated workers at Settle and for the local community which relies on this key employer.
“It will have a significant economic and social impact. GMB will stand side by side with members to make sure they are fully supported throughout this difficult period.
“We will now begin urgent discussions with Arla to explore all possible options to protect jobs. We call Arla and all stakeholders to engage in full and transparent discussions about the future of the workforce and to consider all available alternatives to compulsory redundancies.”
