Müller to invest £60m, close location

10 Nov 2016

Proposals designed to secure a sustainable future for Britain’s biggest fresh milk and ingredients business have been confirmed by Müller Milk & Ingredients (MMI), involvomg an investment of £60million.

Müller to invest £60m, close location

Proposals designed to secure a sustainable future for Britain’s biggest fresh milk and ingredients business have been confirmed by Müller Milk & Ingredients (MMI).

The business is proposing to invest £60m to upgrade capabilities and operational efficiencies at its processing facilities at Severnside and Foston with further enhancements to dairies at Droitwich, Manchester and Bridgwater. The project will create up to 180 new jobs.

The investment is part of a total of more than £100m which will be spent by Müller in the UK across its Müller Milk & Ingredients and Müller Yogurt & Desserts businesses in the next 18 months to improve operational, innovation and marketing capabilities.

MMI has already confirmed a major investment at its dairy at Bellshill in Scotland and reversed the decision taken by Dairy Crest prior to the sale of its dairies to Müller to close a dairy at Hanworth in South West London, securing 170 jobs at the site.

However, the business is now proposing to commence a phased wind down of the Chadwell Heath dairy in North East London over an 18 month period with the potential loss of 389 permanent posts. MMI said its distribution network in the South East is unaffected by this proposal and will be maintained and developed to meet current and future customer requirements.

MMI will begin a 45 day consultation on 10 November 2016 and will work with affected employees and their representatives to look at all options including offering alternative roles within the business.

In the event that a decision is taken to wind down processing operations at Chadwell Heath, Müller will work with dairy farmers who supply the site to review their options with the intention that wherever possible, they will not be disadvantaged.

The proposals follow the acquisition of Dairy Crest’s dairy operations, including Chadwell Heath dairy, in December 2015, and are, said the company, part of MMI’s plan to put in place a modern, efficient fresh milk and ingredients processing and distribution business with national coverage, which meets the needs of its customers across the country.

“When we acquired Dairy Crest’s fresh milk dairy and distribution operations just under a year ago, we made it clear that change would be required to secure a better and more vibrant future for the dairy sector in Britain,” said Andrew McInnes, Managing Director of Müller Milk & Ingredients. “We have taken time to assess the best way forward and to model and design a national processing and logistics network which fully meets the needs of our customers throughout the country now and in the future.”

“We are pleased to confirm proposals to invest in the capabilities of our dairies at Severnside, Foston, Droitwich, Manchester and Bridgwater having already confirmed plans to upgrade our dairy at Bellshill. By improving operational efficiencies and capabilities at these sites, we can unlock new innovation to transform the milk and ingredients sector, benefitting our consumers, customers, colleagues and farmers.”

“Regrettably, it is clear that the dairy at Chadwell Heath is no longer economically viable. It requires complete overhaul and modernisation and in an industry which has struggled for many years with excess and inefficient processing capacity, we cannot justify committing the level of investment which would be required to bring this site to an acceptable and sustainable level of performance.”

“Our proposal is to maintain and develop our distribution footprint in the South East of England, but to wind down processing operations at Chadwell Heath over an 18 month period. We will enter the consultation with an open mind and a determination to listen to our colleagues and rigorously assess the situation in Chadwell Heath before arriving at a decision.”

Related tags

Dairy

Related news

Misleading nutrition claims mask true sugar levels in baby food

Misleading nutrition claims mask true sugar levels in baby food

5 Jan 2023

Some baby and toddler food and drink products, sweetened with fruit concentrate, contain up to four teaspoons of sugar per serving yet are marketed as having ‘no added sugar’, according to a survey by Action on Sugar.

Read more 
Superfrau upcycles liquid whey for energy drinks

Superfrau upcycles liquid whey for energy drinks

22 Dec 2022

US company Superfrau turns surplus whey into sustainable, upcycled-certified dairy products for the recovery drinks market.

Read more 
Functional food in Japan centres on health and proving claims

Functional food in Japan centres on health and proving claims

8 Dec 2022

The latest Japanese functional food and drink trends put health and product efficacy firmly on the production agenda for new releases.

Read more 
Philippines to restrict trans fats in processed foods

Philippines to restrict trans fats in processed foods

5 Dec 2022

Use of artificial trans fats in pre-packed processed foods will be restricted in the Philippines as the country looks to eliminate its consumption from other sources too.

Read more 
Food brands are getting creative to help customers save

Food brands are getting creative to help customers save

23 Nov 2022

As consumers are hit by the cost-of-living crisis, retailers such as Tesco and Sainsbury’s in the UK and Target and Kroger in the US are rolling out various strategies to help people save money and reduce food waste.

Read more 
China bans celebrity endorsement of health and formula foods

China bans celebrity endorsement of health and formula foods

22 Nov 2022

China is to ban celebrity endorsement or advertising of certain products, completely banning high profile figures with “lapsed morals” as the country attempts to drive society towards “core socialist values”.

Read more 
Quorn and Nature’s Fynd among founding members of the Fungi Protein Association

Quorn and Nature’s Fynd among founding members of the Fungi Protein Association

15 Nov 2022

Global fungi protein manufacturers have formed the Fungi Protein Association (FPA), a trade body that promotes fungi as a sustainable protein in public policy and conducts consumer research on the ingredient.

Read more 
Ice cream innovation draws on health and wellness trend

Ice cream innovation draws on health and wellness trend

19 Oct 2022

Manufacturers are formulating ice cream ranges with probiotics, protein, and plant-based ingredients to appeal to growing health and wellness demand.

Read more 
Editors’ choice: Our roundup of the most innovative global dairy products

Editors’ choice: Our roundup of the most innovative global dairy products

6 Oct 2022

From omega-3 goat milk in the Netherlands to banana-flavoured cheese from China, the global dairy space is an exciting area full of new and innovative products which are constantly changing perceptions in the sector.

Read more 
Editor’s choice: Our roundup of the most innovative dairy alternative products

Editor’s choice: Our roundup of the most innovative dairy alternative products

19 Sep 2022

There is so much innovation in the alternative dairy space it can be hard to keep track. From sesame milk to bean-based cheese, our editors have rounded up of some products that showcase the trends in this constantly-evolving category.

Read more