Denmark-based dairy co-operative Arla Foods has announced plans to close its Ashby-de-la-Zouch plant and distribution centre in the UK, as it prepares to begin production at its mega dairy in Aylesbury.
According to the company, Arla plans to transfer milk currently processed at Ashby to Aylesbury, though it may also be transferred to other sites, depending on the location of the farms currently supplying the Ashby plant.
The dairy co-op said that the proposed closure, which is scheduled for April 2014, could see up to 370 jobs being lost subject to consultation with colleagues potentially affected by the plans.
'Milk will continue to be collected, as usual, from farms supplying the dairy and be delivered to Arla’s other processing sites. However, the company may outsource its distribution function to a third party provider', Arla said in a statement.
Commenting on the announcement, Lars Dalsgaard, head of Arla UK’s supply chain said, “Our new dairy in Aylesbury is on track to be processing milk, commercially, by the autumn and volumes are ahead of our original expectations."
“In line with our long-term business goal, we intend to maximise the use of our well-invested dairies, complemented by our new, cutting edge, processing facility in Aylesbury, to meet the requirements of our customers.”
An Arla spokesperson said that the company had no plans to close any other sites.
© 2013 - ESM: European Supermarket Magazine by Ellen Lunney
