January 5, 2012


Arla to launch new plant in Scotland


As part of plans to expand its business in Scotland, Arla Foods will build a new depot in Glasgow.


The dairy giant said the depot is being built to handle an anticipated 40% jump in production capacity at its Lockerbie dairy. However, Arla admitted Wednesday (Jan 4) that jobs may be affected by the move.


Paul Lloyd, vice president for operations at Arla, said: "The proposal is in line with Arla's growth strategy, and we have identified Scotland as an opportunity for further growth. The new depot will establish a strong platform for future fresh milk deliveries in Scotland.


"Unfortunately, as a result of these changes a small number of roles at Lockerbie may be affected within transport and despatch. However, some jobs may be created in production due to the capacity increase at the dairy. Colleagues affected by these proposals have been informed and a full consultation process will take place."


A spokesperson from Arla said the number of jobs that could be lost or created is not yet known. It is expected that, subject to consultation, the proposals will be implemented in March. Once up and running, Arla plans to work with a third party to manage the depot, the company said.


In February 2010, around 65 dairy jobs were cut when Arla sold Nairn-based Claymore Dairies to management for an undisclosed sum.


As part of the deal, Arla switched some of its production to Lockerbie and opened a distribution hub in Dundee to service its Highland customers.