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Daily Record
Daily Record
National
Stuart Gillespie

Buyout could be on the cards for Dumfries and Galloway yoghurt production plant facing closure

A potential buyout could on the cards for a yoghurt production plant threatened with closure.

Scottish Secretary Alister Jack has called on Dale Farm Ltd to engage with a consortium considering preparing a bid Rowan Glen at Palnure.

Forty-eight jobs are on the line at the site, with Belfast-based Dale Farm also considering closing a site in Cumbria due to “excess capacity and declining demand”.

In a letter to Dale Farm, Dumfries and Galloway MP Mr Jack wrote: “A consortium of local parties have developed a proposal for a buyout-style arrangement to purchase the Palnure site and assets and I understand that you have received the prospectus.

“In my view this is a plan that not only protects local jobs but ensures the future of a dairy processing facility in the area.

“I am therefore urging you to engage in discussions around this proposal. First and foremost, it is important that every effort is made to protect the workforce and any viable plan that secures the Rowan Glen facility should, in my view, be given serious consideration.

“If I can be of any assistance please do not hesitate to get in touch and I would be grateful if you could keep me updated.”

Meanwhile, the Scottish Government has pledged to do “everything in its power” to help any staff made redundant at the award winning site.

In a letter to South Scotland MSP Emma Harper, Business Minister Ivan McKee wrote: “I have spoken directly with Nick Whelan, chief executive of Dale Farm, and Nasair Hussain, managing director of Dale Farm, and offered the full support of the Scottish Government and South of Scotland Enterprise.

“SOSE has been engaging extensively with Dale Farm over recent weeks to explore all options and will offer any assistance that might be required.

“The people affected by this development are the immediate priority. In the unfortunate event that any individuals should face redundancy, the Scottish Government will do everything in our power to help those affected through our initiative for responding to redundancy situations, Partnership Action for Continuing Employment.”

Rowan Glen began operating in 1993 before being bought by dairy co-operative Dale Farm in 2002, with the proposed closures part of a restructure.

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