Müller Milk & Ingredients intends to invest £60m to upgrade its fresh milk and ingredients dairies in the UK.

With this new investment, the company expects to create nearly 180 jobs.

The company also revealed that it plans to close operations at its dairy in Chadwell Heath, North-East London, over the next 15 months that could affect nearly 389 permanent posts.

"We aim to transform the milk and ingredients sector, benefitting our customers, consumers, colleagues and farmers.” 

Müller Milk & Ingredients managing director Andrew McInnes said: “We understand that the decision to wind down processing operations at Chadwell Heath directly affects a number of our colleagues, but unfortunately, this announcement is unavoidable.

“It is clear that the dairy at Chadwell Heath is no longer economically viable and in an environment wher there is simply too much fresh milk processing capacity, we simply cannot justify the level of investment required for the complete overhaul and modernisation required at the site.

“wherver possible, we will offer colleagues opportunities to relocate within our network, and we will do everything we possibly can to support those who do not wish to relocate or for whom there are no roles.”

“By improving operational efficiencies and capabilities at various sites, we aim to transform the milk and ingredients sector, benefitting our customers, consumers, colleagues and farmers.” 

The dairy firm further stated that the decision has been taken following a review of the company’s dairy network to secure its future sustainability and competitiveness, as well as enhance capabilities to produce a wider range of fresh milk products.

The £60m will be invested across various processing facilities in Severnside, Foston, Droitwich, Manchester and Bridgwater.

The investment will be used towards purchasing a new filling line at Foston, enhance processing capabilities at Droitwich and Bridgwater, as well as create a centre of excellence for flavoured milk and fresh cream at Severnside.