Milk processor Muller has confirmed a review into the viability of its glass bottling plant in Hanworth, West London, placing 162 jobs at risk of redundancy.
It follows a decision by Muller, whose primary business in the UK is the supply of milk and yogurt to retail, to sell its dairy delivery company Milk & More to rival processor Freshways
Over 95% of the volume processed at the Hanworth site is destined for Milk & More, and Freshways has confirmed that they will not require supply from Hanworth.
Muller has commenced a 45 day consultation process to assess future operational requirements at the site.
While the outcome will not be determined until this work has been completed, the processor says it "cannot at this stage rule out any necessary action, which includes the closure of the site".
Rob Hutchison, CEO of Muller, said the processor would now 'carefully consider all options' regarding the site's future.
“Having worked with Freshways Group to understand their future requirements for Milk & More, it is with regret that we must now address potential extra capacity at our Hanworth site.
“We enter this process with a desire to fully understand the employee perspective and we will carefully consider all options before arriving at any decision on the future of the site.”