Müller considers closing North East sites

Almost 100 jobs are at risk as Dairy farmers Muller announce they are considering moving out of the North East.

Published 31st Mar 2016

Almost 100 jobs are at risk as Dairy farmers Muller announce they are considering moving out of the North East.

The firm say the potential closures are part of a major review into their business.

If the move does go ahead it will clear the way for a 15 million pound investment to the company’s Bellshill site.

The company revealed north east farmers wishing to supply milk to the Bellshill operation would be charged an extra 1.75 pence per litre of milk, and those who don’t wish to continue to supply will have their contracts terminated at 12 months’ notice.

Managing Director Andrew McInnes said: "We aim to reinvigorate our fresh milk and ingredients business in Scotland and propose to invest to make Bellshill a centre of excellence for dairy, benefitting consumers, customers, employees and farmers.

"It is important to stress that the status quo is just not viable in the medium term. Our Scottish dairies are inefficient and costly which is putting a brake on the innovation and investment needed to stimulate new demand for dairy products.

"Our Aberdeen dairy is operating at less than 40% of its capacity and milk production from farmers in the North East is far in excess of customer requirements in the area.

"Our small dairy in East Kilbride makes products including flavoured milks and potted cream and we believe that we can gain important efficiencies by relocating that production to Bellshill, which is nearby.

"We will enter the consultation with an open mind and will rigorously assess the situation and listen to our colleagues before arriving at a decision."