Arla has revealed plans to invest €107.7m in its Lockerbie site in Scotland to support its growth strategy. However, the dairy giant said the proposed investment could impact staff across two of its other UK sites, with a potential closure of one.
The company wants to create a ‘Centre of Excellence’ for the production of UHT and Lactofree milk at Lockerbie.
David Boulanger, 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 plans, the group noted that there would be a potential impact on some staff based at its Stourton plant and all those working at its Settle site, which Arla proposes to close. There are no immediate changes proposed, although the anticipated change date would be from the second half of 2026 if the proposals go ahead.
Boulanger continued: “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, 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 €355m 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.”
