Arla, the Danish dairy firm, has announced plans to close a number of UK operations as part of an efficiency-saving programme.
In a bid for “optimised UK cheese production”, the cooperative said it was proposing to cease production at its Llandyrnog creamery in Wales, consequently moving cheddar cheese volumes to creameries in Taw Valley in south-west England and Lockerbie in Scotland. In addition, Arla said it intended to integrate all of its cheddar cheese packing lines into its facility in Oswestry in the English midlands, resulting in the closure of smaller packing operations in Lockerbie as well as Malpas in north-west England.
“As one of the UK’s largest cheese producers, Arla has identified a substantial opportunity to optimise its cheddar cheese production as well as improve efficiencies consolidating operations across its production and packing sites, where it currently has capacity which is not currently being fully utilised”, the firm said in a statement.
The move is part of a wider programme called Calcium through which Arla is seeking to achieve €400+ million ($460+ million) in cost savings and efficiencies over three years.