First Milk mulls closure of cheese packing facility in Wrexham

First Milk, a dairy farmer co-operative in the UK, is considering closure of its cheese-packing creamery in Marchwiel, Wrexham, by the end of May 2014, a move which would lead to 231 job losses.

The co-operative has lost a major contract from retailer Asda and is set to commence consultation period with employees and their representatives in the coming days.

It is no longer economically viable for the business to keep the site at Maelor operational, the company said after concluding a review.

A First Milk spokesman said that the company very much regrets the need to make the proposal to close the Maelor operation.

"We have already briefed the trade unions at national and local level, and have committed to work closely and constructively with them over the coming weeks and months," he added.

Commenting on the closure, Wales Secretary of State David Jones said the news that there may be a significant number of job losses at the First Milk site in Wrexham will cause a great deal of concern to the workers, families and communities affected.

Jones added, "The Wales Office is in close communication with the company and we are committed to working with the Welsh Government to offer all the support we can at this difficult time.

"This is a sobering reminder of the challenges the Welsh economy still faces."

Following the closure, First Milk plans to extend its capabilities to continue supplying its clients with bulk cheese, which is then packed at third party facilities.

Operations at the company’s other creameries in Wales, England and Scotland will run as usual.

The company is currently holding negotiations with Danish co-operative Arla, which bagged the Asda contract, to employ its staff affected by the closure.

First Milk external relations director Paul Flanagan was quoted by the BBC Radio Wales as saying, "In our conversations with them we believe they’ve got a legal responsibility and also a moral responsibility that with picking up this business from Asda the employees should go with that.

"So we’ve had conversations with them about that and their site is only based 12 miles away, so they’re very, very close."

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Image: First Milk is set to commence consultation with employees shortly. Photo courtesy of First Milk Ltd.