Müller to close two facilities and invest $21.6m at Bellshill facility in Scotland

German-based dairy company Müller intends to close its Aberdeen and East Kilbride plants in Scotland, and invest $21.6m in Bellshill dairy over the next three years.

The closure of its two Scottish dairies could lead to the loss of 229 jobs.

The company stated that in the event of a decision to close processing operations at the Aberdeen dairy, all 43 farmers supplying to the site will be offered the opportunity to continue supplying to the business, which is conditional on the acceptance of a 1.75 pence per litre transport charge, which reflects the need to move the milk to Bellshill for processing.

Müller has also indicated that farmers who do not intend to continue supplying the firm in the longer term, will have their contracts terminated after 12 months’ notice, which gives them time to make alternative arrangements for their milk production.

The firm has confirmed that it has begun a 45-day statutory consultation, during which the company will consult its employees and their representatives regarding the closure.

According to the dairy company, both plants are operating well below complete utilisation with over 60% of the capacity at the Aberdeen plant being unused.

Müller Milk and Ingredients managing director Andrew McInnes said: "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."

Meanwhile, the investment at Bellfish will bolster efficiencies and competitiveness whilst enabling the firm to broaden its range of dairy products.