Dairy giant Muller is to centralise its operations in Scotland, putting 225 jobs at risk and pushing up costs for some existing suppliers.
Muller Milk & Ingredients will invest £15 million in its dairy at Bellshill, North Lanarkshire, and close its smaller dairies in Aberdeen and East Kilbride, South Lanarkshire, which “are operating well below full utilisation”.
It has pledged to “investigate further opportunities to grow its business in Scotland” but confirmed 225 posts are affected by its decision to close the Aberdeen and East Kilbride sites.
Andrew McInnes, managing director of Muller Milk & Ingredients, said: “Unfortunately the status quo was not sustainable within our Scottish dairy network, with both Aberdeen and East Kilbride dairies operating well-below capacity.
“By investing in Bellshill we will be better able to optimise the value in the milk we buy from dairy farmers.
“Wherever possible, we will offer employees the opportunity to relocate within our network.
“We will support those who do not wish to do so or for whom there are no roles within our business, and we have asked local agencies to work with us in this regard.”
The Aberdeen dairy is expected to close in the middle of June while East Kilbride will continue for the next 18-24 months to allow time to transfer production lines across to Bellshill.
Muller said all 43 farmers supplying the Aberdeen dairy can continue to supply Bellshill, subject to a 1.75 pence per litre charge to cover the cost of transportation, or give 12 months notice of cancellation.
The Usdaw union said members are “devastated” by the decision.
Daniel Adams, Usdaw national officer, said: “Usdaw will continue to support our members at both sites and to press the company to maximise redeployment opportunities to minimise job losses, and provide support for those members who are unable to find alternative positions within the business.”
