Dairy giant Arla has proposed the closure of its production site in Settle in UK's North Yorkshire and aims to move some parts of production from its Stourton site in South Staffordshire.
The cooperative plans to invest €107.7 million at its Lockerbie site in Scotland to set up a new UHT Centre of Excellence.
The investment, which Arla says will support the cooperative’s future growth ambitions, is likely to affect colleagues based at two production facilities in the UK.
Executive vice president and head of supply chain, David Boulanger, stated, “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.”
There are no immediate changes proposed, however, the anticipated changes could take effect from the second half of 2026, should the proposals go ahead, according to the dairy giant.
Trade Union Response
According to trade union GMB, the decision to close the Settle facility could risk to more than 100 jobs. Deanne Ferguson, GMB Organiser, said, “If Arla's proposal to close goes ahead, it will be a devastating blow for the dedicated workers at Settle and for the local community which relies on this key employer.
“It will have a significant economic and social impact. GMB will stand side by side with members to make sure they are fully supported throughout this difficult period.”
Centre of Excellence
The proposed Centre of Excellence at Lockerbie will see the production of UHT and Arla's Lactofree range of milk products.
UHT is milk processed at an ultra-high temperature and does not require refrigeration until opened.
Boulanger added, “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.”
Mark Boot, executive vice president of Europe at Arla Foods, added, “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.”
