Müller Milk & Ingredients to invest £60m in dairy network restructuring

UK-based dairy and ingredients company Müller Milk & Ingredients (MMI) is planning to invest £60m into upgrading its processing facilities at Severnside and Foston.

The dairy company also intends to use its investment to enhance its diary facilities located in Droitwich, Manchester and Bridgwater.

This funding aims to improve capabilities and operational efficiencies at its processing facilities, as well as create up to 180 new jobs.

The investment is part 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 boost operational, innovation and marketing capabilities.

Müller Milk & Ingredients managing director Andrew McInnes said: “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.

“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 south-east 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.”

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