A MAJOR dairy firm has proposed closing a factory in England and moving production to Scotland which could impact around 150 jobs.
Arla Foods is reportedly considering shutting its plant in Settle, Yorkshire, in northern England and moving production to its Lockerbie site in in Dumfries and Galloway.
Some operations from a facility in the Stourton region of Leeds are also being moved to Lockerbie, according to Just Food.
The Danish dairy giant Settle site employs 128 workers, with an additional 450 employees based in Leeds.
In a statement sent to Just Food, Arla Foods said the proposed changes will affect “some colleagues” at Stourton and all staff based at Settle.
A spokesperson for the food firm said the planned move puts 152 jobs at risk but said approximately 90 new positions will be created in Lockerbie.
It is also reported that the company behind Cravendale milk and Arla Skyr yogurt is planning to invest €107.7 million in the Lockerbie plant.
Arla is now initiating a “period of consultation” with the affected workers at the English sites as the proposed transition is said to occur in the second half of 2026.
Deanne Ferguson from the GMB trade union, which represents workers at the affected plants, said the closure plans in England would have “a significant economic and social impact”.
She said: “We will now begin urgent discussions with Arla to explore all possible options to protect jobs,” [and to] “consider all available alternatives to compulsory redundancies.”
Arla spokesperson said: “Unfortunately we are limited by the land available in Settle, so we are proposing to close this site and to reinvest into Lockerbie, which has the required space and buildings.”
It was reported that Arla intends to set up a centre for the production of UHT and lactose-free milk at the Lockerbie site.
Arla executive vice-president and head of supply chain David Boulanger said: “We have chosen Lockerbie as a future UHT competence centre in the UK as it allows us to achieve economies of scale, improve efficiency and strengthen our resilience.
“Furthermore, it is close to a large milk pool, which provides some additional sustainability benefits.”
When Arla reported its 2024 financial results last week, the company projected “efficiencies” for 2025 of €90-110m.
Asked last week by Just Food if Arla had plans to cut jobs or close factories, a spokesperson said: “We don’t have any plans for this but, even if we did, we couldn’t comment on it here. Efficiencies are not equal to job cuts or factory closes, which is important to remember.”
