Factory closure plans could see 128 jobs lost

Steve Jones
BBC News, Yorkshire
Google The outside of the Arla factory in Settle. The company's logo can be seen on the side of a building.Google
Arla plans to close its Settle site by the end of 2026

More than 120 jobs are at risk under plans to close a North Yorkshire dairy factory.

Milk production firm Arla said it planned to close its Settle site by the end of 2026, putting 128 roles there under threat.

The company, which is headquartered in Leeds, plans to move more of its operations to its Lockerbie site in Scotland, including some that are currently based in Stourton, Leeds.

Deanne Ferguson from the GMB union said the closure would be "a devastating blow for the dedicated workers at Settle and for the local community which relies on this key employer".

Arla Foods' vice president of production, Fran Ball, said the company would be entering into a period of consultation with its employees over the plans.

Ms Ball said the proposals "form part of our strategy to strengthen our manufacturing network and futureproof dairy production in the UK".

An Arla spokesperson said it "remains committed to being a major employer in the Yorkshire region".

The spokesperson said more than 1,000 people were employed in Leeds, including about 500 people at the company's headquarters in Leeds Valley Park and a further 450 people at its dairy in Stourton.

No jobs were under threat in Leeds, they added, although about 24 roles would be impacted due to the changes.

Last year the company invested £65m investment in its Stourton site, according to the spokesperson.

'Economic and social impact'

The company said it planned to invest almost £90m into its Lockerbie site, creating 90 new jobs.

The plans include creating a UHT milk "centre of excellence". UHT and lacto-free milk is currently produced in Settle.

Ms Ferguson said the closure would have "a significant economic and social impact".

"We will now begin urgent discussions with Arla to explore all possible options to protect jobs.

"We call on 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."

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