March 4, 2025

Arla announces proposal to invest US$113 million in UHT milk production in UK

Arla has proposed to invest €107.7 million (US$113 million) to create a new UHT Centre of Excellence at its Lockerbie site in Scotland, the United Kingdom.

Speaking about the investment proposals, David Boulanger, Arla's executive vice president and Head of Supply Chain, said: "We have chosen Lockerbie as a future UHT centre of excellence in the UK as it allows us to build scale, drive significant efficiencies, and strengthen our resilience. Located close to a large milk pool, Lockerbie brings additional sustainability advantages with our recently invested anaerobic digestion plants. The new investment will enable us to increase UK production capabilities in UHT and Lactofree technologies, supporting further growth with our strategic customers in the UK."

As a result of the investment plans, there is a potential impact for some employees based at Arla's Stourton site and other employees at its Settle site, which the cooperative proposes to close. The anticipated change date is from the second half of 2026, if the proposals go ahead.

Boulanger said: "This investment for Lockerbie implies that we are proposing to move some production from other sites in the UK and as a result, will potentially impact some of our colleagues in Stourton and Settle. At Arla, we are committed to supporting all colleagues through periods of change and we understand that this will be a time of uncertainty for everyone who works across these sites. We will be entering into a period of consultation with all colleagues affected by these proposals."

Mark Boot, Executive Vice President (Europe) at Arla Foods, said: "Arla is one of the biggest food companies in the UK, and as a global dairy cooperative, we want to continue to grow within this market, whilst continuing to look for opportunities to create more value for our farmer owners' milk.

"This investment comes on top of over €355 million site investments announced in 2024 for the country. We have a responsibility to provide high quality dairy to our consumers and customers, and today's news demonstrates Arla's confidence in the future of British dairy."

- Arla