128 jobs at risk as Arla Foods reveals plans to close site in Settle
Arla Foods has revealed that it plans to close its site in Settle, North Yorkshire, placing 128 jobs at risk.
Arla Foods also revealed that it proposed to invest nearly £90m into its Lockerbie site in Scotland as part of its strategy to support UK manufacturing and the future of British dairy. As a consequence of this investment, Arla has announced a proposal to move its Settle site and some of its operations in Stourton, near Leeds, to Lockerbie.
The statement added: “Alongside the £300m site investments announced in 2024, which included £34m investment into Lockerbie’s cheddar production, the food manufacturer has today announced a proposal to further increase the investment in Lockerbie to enable it to future proof its UK production.
“The UK’s largest dairy cooperative is proposing to create a Centre of Excellence for the production of UHT and Lactofree milk at Lockerbie, which could create new roles in the local area.
"However, as a result of the investment proposals, there is a potential impact for some colleagues based at its Stourton site, and all colleagues at its Settle site, which Arla proposes to close. Arla will enter into a collective consultation period with all colleagues impacted by today’s proposal.”
An Arla spokesman confirmed that 128 staff based in Settle are impacted by the proposals announced today.
The spokesman added: “We will be entering into a period of consultation, and the proposals are very much proposals at this stage. During this consultation period there will be no change for employees or farmers; it is very much business as usual, and all farmer milk will continue to be collected.”
“We do not envisage any redundancies at Stourton and expect colleagues to be redeployed into equivalent roles at site. We will commence collective consultations on or before March 13 2025 with colleagues at Settle to fully review proposals and all options.”
Speaking about the proposals, Fran Ball, VP of production at Arla Foods, said: “The proposals announced today form part of our strategy to strengthen our manufacturing network and futureproof dairy production in the UK, and whilst this is an exciting announcement for Lockerbie our priority right now is to support our Yorkshire colleagues.
"At Arla we are committed to supporting everyone through periods of change and we understand that this will be a time of uncertainty for colleagues who work across our Yorkshire sites. We will be entering into a period of consultation with everyone affected by these proposals, announced today.”
Speaking about the proposals and the role dairy plays in our diets, Bas Padberg, managing director of Arla Foods UK, said: “The proposed investment into Lockerbie showcases our commitment to driving change in the UK, and supporting the future of British dairy."
Arla said it remains committed to being a major employer in Yorkshire. Its UK headquarters is on Leeds Valley Park, where around 500 people are employed.
Deanne Ferguson, GMB Organiser, said: “If Arla's proposal to close goes ahead, it will be a devastating blow for the dedicated workers at Settle and for the local community which relies on this key employer.
“It will have a significant economic and social impact.
"GMB will stand side by side with members to make sure they are fully supported throughout this difficult period."