Müller Milk & Ingredients is proposing to invest £60m to upgrade capabilities and efficiencies, in a move to secure a 'sustainable and vibrant future'.
The investment, to be pumped into the dairy organisation's processing facilities at Severnside and Foston, with further enhancements to dairies at Droitwich, Manchester and Bridgwater, will create up to 180 new jobs.
The investment is part of a total of more than £100m which will be spent by Müller in the UK in the next 18 months to improve operational, innovation and marketing capabilities.
MMI has already confirmed a major investment at its dairy at Bellshill in Scotland and reversed the decision taken by Dairy Crest prior to the sale of its dairies to Müller to close a dairy at Hanworth in South West London, securing 170 jobs at the site.
Chadwell Heath dairy closure
However, the business is now proposing to commence a phased wind down of the Chadwell Heath dairy in North East London over an 18 month period with the potential loss of 389 permanent posts.
MMI’s distribution network in the South East is unaffected by this proposal and will be maintained and developed to meet current and future customer requirements.
MMI will begin a 45 day consultation on 10 November 2016 and will work with affected employees and their representatives to look at all options including offering alternative roles within the business.
In the event that a decision is taken to wind down processing operations at Chadwell Heath, Müller will work with dairy farmers who supply the site to review their options with the intention that wherever possible, they will not be disadvantaged.
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.
“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 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.”
