Nearly 50 jobs are under threat at an award-winning yoghurt producer in Dumfries and Galloway.
Dale Farm Ltd is considering closing Rowan Glen at Palnure near Newton Stewart, as well as its facility in Cumbria.
The council has pledged to do “all it can” in a bid to support employees.
A statement from Belfast-based Dale Farm said: “As part of its ongoing strategic development, dairy co-operative Dale Farm is considering restructuring part of its Great Britain business, specifically its Kendal, Cumbria and Rowan Glen, sites. This restructure could result in a proposal to cease operations at these two facilities.
“Dale Farm recognises and appreciates the loyalty, hard work and commitment from employees at both sites. This consideration has been prompted by a thorough review of Dale Farm’s operations, examining which elements of the business are sustainable for the future.
“These two manufacturing sites compete in a market characterised by excess capacity and declining demand for their primary products. Aside from the market challenges, the sites are experiencing significant inflation and require major investment in order to remain viable.
“Dale Farm is now entering into a period of consultation with those impacted. Dale Farm will work closely with all employees and representatives, providing ongoing support throughout this process.”
Rowan Glen was launched in 1993 and bought by Dale Farm in 2002. The firm says its arrangements with existing farmer members will not be affected.
The Standard understands 49 people are employed at the Palnure site with as many as 200 staff across the two threatened operations.
The council has called on South of Scotland Enterprise to work with the firm for an alternative solution and has also alerted Partnership Action for Continuing Employment (PACE).
Co-leader Linda Dorward said: “This is sad news. Through SOSE, we will focus our best efforts to ensure staff are supported as much as possible. However, we are still committed to working through our partners to consult with Dale Farm Ltd to see if there is anything that can be done to keep the plants open.”
Fellow co-leader Stephen Thompson added: “The council will do all that it can.”
“We held discussions last week and are working closely with them to investigate all areas of potential assistance that we can provide to try to help mitigate any redundancies, and try to identify options for a sustainable future for
the business.”
