Arla Foods plans expansion in Scotland

Arla Foods is to grow its business in Scotland, and plans to create a new depot in Bellshill, Glasgow, to handle additional milk and product volumes.

Arla is aiming to increase production capacity by almost 40 per cent at its Lockerbie dairy, which will enable the company to meet growing demand from customers. The new depot will have the capacity to deliver both fresh milk products direct to store for the business, and also other products for own and third party customers through Arla’s pallet network.

Paul Lloyd, vice president for operations at Arla, said: “The proposal is in line with Arla’s growth strategy, and we have identified Scotland as an opportunity for further growth. The new Central Belt depot will establish a strong platform for future fresh milk deliveries in Scotland.

“The move will also support our sustainability agenda, as our product will be closer to the customer, reducing the number of road miles."

It is expected that the proposals will be implemented in March 2012. Once up and running, Arla plans to work with a third party to manage the Central Belt depot.

Arla Foods UK plc is home to some of the UK’s leading dairy brands including Cravendale, Lurpak and Anchor. Processing approximately two billion litres of milk a year Arla continues to be one of the UK’s leading dairy companies and a supplier of fresh liquid milk and cream to the top seven retailers.

Over 2,500 daily deliveries are made directly to stores nationwide and Arla brands can be found across the dairy category. As well as the leader of the butter, spreads and margarine sector, and a major supplier of other added value products including flavoured milk and cheese, Arla continues to build working relationships with Arla Foods Milk Partnership, a unique group of dairy farmers, which supplies around 90 per cent of Arla's total milk requirements.

Behind this leading business is a team of circa 2,800 people across the UK located at our dairies, distribution centres and head office.