Dairy firm plans £90m investment in Lockerbie site

Dairy giant Arla Foods has revealed proposals for a £90m investment in its site in the south of Scotland.

It could see a new UHT centre of excellence set up in Lockerbie, creating 90 new jobs.

The investment would have an impact on other Arla Foods sites with closure proposed at Settle in North Yorkshire.

Arla said the plans underlined its ambitions to continue its growth to "support UK manufacturing and the future of British dairy".

The company said it would enter into a collective consultation period with all staff affected by the proposal.

As well as the closure at Settle, some of its operations currently based in Stourton, Leeds, would move to the south of Scotland.

The UK's largest dairy co-operative is proposing to create a centre of excellence for the production of UHT and Lactofree milk at Lockerbie.

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 he was "incredibly proud" to see the investment proposed at Lockerbie.

"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," he added.

Dumfriesshire MP David Mundell described it as a "real vote of confidence in the local workforce".

"The dairy industry is a major driver of our economy here in Dumfriesshire and, if confirmed, this substantial package of investment would go a long way towards maintaining vital local jobs and supporting the farmer-owned co-operative," he said.

"We will now await the outcome of the collective consultation period but, on the face of it, this does look like some very positive news for our local economy."

Bruce Mackie, who chairs NFU Scotland's milk committee, described the news as a "huge vote of confidence in this nation's ability to produce milk".

"The proposed investment in UHT and Lactofree production at the site has the potential to double the milk-processing capacity at Lockerbie and we look forward to hearing how Scottish producers can help meet the co-op's demand for additional milk," he said.

"The sustainability ambitions of Arla are aligned with the capabilities of Scottish dairy farms to produce low-carbon milk in a sustainable manner through efficient and well-invested farms operating in a climate that is ideally suited to milking cows."

He said it underlined the "huge potential to invest" in dairy farming in Scotland.