Arla has confirmed it will press ahead with its proposal to close its Settle creamery, despite widespread opposition to the move.
As a result of its new Lockerbie investment proposal, Arla said it wanted to close down its Settle site and a consultation was launched earlier this year.
Following this, the co-op has decided to close down the factory, a move which has been called a "devastating blow" to 130 skilled jobs, as well as the wider rural community.
GMB Union and other stakeholders had presented options to save the site, including a move to a greenfield location, product diversification, and shared production use of the Settle facility.
However, at a consultation meeting held on Friday 25 April, senior Arla executives confirmed production would be relocated to Lockerbie.
Deanne Ferguson, GMB organiser, said that the union would now move to ballot its members on potential strike action.
“We are extremely disappointed Arla has chosen not to take forward any of the alternative business cases put forward through a genuine and collaborative effort with key stakeholders.
"Our commitment to the workers at Settle remains absolute and we will not let the town lose 130 skilled jobs without a fight.
"We urge Arla to keep the door open for further dialogue and GMB remains ready to work constructively with management."
Arla said the move formed part of a wider plan to consolidate operations and invest in its facilities in Scotland.
The dairy co-operative stated that relocating production would help future-proof its UK manufacturing network.
"We remain committed to being a major employer in the Yorkshire region," a spokesperson said.