UK Dairy Chrisis Mounts With Closure Of Dairy Crest Facility
UK - More consolidation is looming in UK dairy, after Dairy Crest said it may close its milk bottling and production factory in Totnes.
16 May 2007
1 minute read
As a result of the review Dairy Crest confirmed today that it is considering the potential closure of the Totnes site and will immediately start a consultation process with employees and unions over the next 90 days. Currently the Totnes site employs 164 people. Existing glass bottle and NRC milk production will be transferred to other Dairy Crest sites with spare capacity.
The move was prompted by an internal review, and suggests the group is keen to consolidate its operations in order to save on costs.
A Dairy Crest spokesperson said there was little room for expansion at Totnes, where the factory is boxed in by houses and the railway.
"It became very clear that if we were going to modernise the plant, which it does need, then expansion would be necessary. Unfortunately, that just wasn't possible."
She added the whole dairy industry continued to face "relentless cost pressures" and that "going forward we are better positioned if we produce milk in other factories".
The group review anticipated closing the Totnes site by November. If a deal is agreed with unions, operations there would be wound down in the two months before this, with glass bottle and non-returnable container milk production transferred to other Dairy Crest sites.
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