Müller Milk & Ingredients has announced plans to close down its Chadwell Heath, North-East London factory, claiming that the facility is no longer economically viable. Consequently, the company wants to cut 389 jobs. However, it will invest £100M elsewhere.

On November 3, the company confirmed that it will embark on consultations with staff and unions over a period of 45 days starting from November 10.  The factory will be closing in 18 months. The firm stated that it will try to find other roles for employees affected by this move. It also promised to work with its dairy suppliers in order to “review their options” prior to the closure.

Müller Milk & Ingredients’ Managing Director, Andrew McInnes expressed regret over this move, adding that it was obvious that the facility was no longer economically viable.

Complete Refurbishment and Innovation

According to McInnes, the facility needs complete refurbishment and innovation, and committing the level of investment required in order to bring it to satisfactory and sustainable levels of performance is unjustifiable in an industry which has for many years struggled with a processing capacity that was excessive and inefficient.

However, McInnes said that the company’s distribution in South East England will not be affected by the planned closure.  He claimed that the company is determined to listen to the staff and will go into consultations with them with an open mind.

Müller Milk & Ingredients planned to invest £60M at its sites in Severnside, Foston, and Lincolnshire and the closure of its Chadwell Heath North-East London factory was unveiled as part of the dairy firm’s restricting project.  The investment, which was part of a £100M company-wide investment project, would reportedly create up to 180 new jobs. The company said it will also improve its Bridgwater, Droitwich, and Manchester dairy factories.

£60M to Be Invested at the Company’s Foston and Severnside Sites

McInnes said the company had already confirmed plans to upgrade its dairy at Bellshill and was pleased to confirm its proposed investment in the capabilities of its dairies located in Bridgwater, Droitwich, Foston, Severnside, and Manchester.

He said that enhancing operational efficiencies and capabilities at those sites will allow the firm to unlock new innovation to bring about changes in the milk and ingredients industry. This will in turn benefit many people including customers, consumers, farmers, and colleagues.