Arla has proposed an investment of EUR 107.7 million to create a new UHT Centre of Excellence at its Lockerbie site in Scotland. As a result of the proposed investment, there is a potential impact for some colleagues based across two UK sites, with a proposed closure at Settle.
Said David Boulanger, Executive Vice President and Head of Supply Chain: “We have chosen Lockerbie as a future UHT centre of excellence in the UK as it allows us to build scale, drive significant efficiencies and strengthen our resilience. Located close to a large milk pool, Lockerbie brings additional sustainability advantages with our recently invested anaerobic digestion plants. The new investment will enable us to increase UK production capabilities in UHT and Lactofree technologies, supporting further growth with our strategic customers in the UK.”
As a result of the investment plans, there is a potential impact for some colleagues based at its Stourton site, and all colleagues at its Settle site, which Arla proposes to close. There are no immediate changes proposed, however the anticipated change date is from the second half of 2026, if the proposals go ahead.
Continued Boulanger: “This investment for Lockerbie implies that we are proposing to move some production from other sites in the UK and as a result, will potentially impact some of our colleagues in Stourton and Settle. At Arla we are committed to supporting all colleagues through periods of change and we understand that this will be a time of uncertainty for everyone who works across these sites. We will be entering into a period of consultation with all colleagues affected by these proposals.”
Added Mark Boot, Executive Vice President Europe: “Arla is one of the biggest food companies in the UK, and as a global dairy cooperative, we want to continue to grow within this market, whilst continuing to look for opportunities to create more value for our farmer owners’ milk. This investment comes on top of over EUR 355 million site investments announced in 2024 for the country. We have a responsibility to provide high quality dairy to our consumers and customers, and today’s news demonstrates Arla’s confidence in the future of British dairy.”
The news follows Arla’s announcement in 2024 to invest over EUR 355 million across its UK sites, including EUR 210 million in a state of the art mozzarella operations in our Taw Valley creamery in Devon. For more visit arla.com
