Müller investing £60 million but cutting 389 jobs
Shropshire-based Dairy giant Müller is set to cut almost 400 jobs – but also invest £60 million in selected factories across the country.
The business is proposing to start a phased wind down of the Chadwell Heath dairy in north east London over an 18-month period, with the potential loss of 389 jobs.
The Market Drayton-based firm will begin a 45-day consultation on Thursday.
It will work with affected employees and their representatives to look at all options including offering alternative roles within the business.
Elsewhere, £60 million will be invested in its processing facilities at Severnside, in Gloucester, and Foston, in south Derbyshire, 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 £100 million which will be spent by Müller in the next 18 months to improve operational, innovation and marketing capabilities.
The yoghurts and desserts division is centred on Shropshire, and has four major production facilities in the county.
However, They will be unaffected by the latest developments.
Andrew McInnes, managing director of Müller Milk & Ingredients, said: "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 a 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."
NFU dairy board chairman Michael Oakes said: "The announcement of further investment from Müller in the UK is a positive sign for the future for their suppliers.
"However, we also recognise the uncertainty for staff at Chadwell Heath. Müller has assured us that following the consultation, they will work with dairy farmers supplying Chadwell Heath to ensure that they are not disadvantaged."
