Muller Milk & Ingredients is planning to invest £15m in the next three years in Scottish fresh milk dairy at Bellshill as part of its strategic review of Scottish dairies.
The investment is intended to improve operational efficiencies and competitiveness while broadening the dairy's capacity to enhance range of its products that it makes using milk produced by the Scottish farmers.
Muller is also exploring opportunities for growth in Scotland as it intends to build a diverse dairy business in the UK.
The dairy firm has confirmed that as part of its strategic review it would wind down milk processing at its smaller Aberdeen and East Kilbride dairies and has initiated a 45-day statutory consulting in this regard.
Both the dairies are operating below its full utilization capacity with more than 60% of the capacity at the Aberdeen plant remaining unused, the company said.
Muller's review does not include its network of distribution depots in Scotland. However, a few roles at the Aberdeen depot will fall under consultation. About 229 jobs would be made redundant at Aberdeen and East Kilbride sites.
The company will consult its employees and their representatives at the Aberdeen and East Kilbride sites through the review process to fully assess and evaluate the proposal. Under the consultation period, the company will not take any decisions until the findings are reviewed.
In case Muller decides to wind down the Aberdeen dairy processing operations, all of the 43 farmers supplying to the site will continue to supply the business if they accept a 1.75 pence per litre transport charge, which would be effectuated to exercise the need to move milk to Bellshill for processing.
Müller Milk & Ingredients managing director Andrew McInnes said: "We aim to reinvigorate our fresh milk and ingredients business in Scotland and propose to invest to make Bellshill a centre of excellence for dairy, benefitting consumers, customers, employees and farmers.
"It is important to stress that the status quo is just not viable in the medium term. Our Scottish dairies are inefficient and costly which is putting a brake on the innovation and investment needed to stimulate new demand for dairy products.
"Our Aberdeen dairy is operating at less than 40% of its capacity and milk production from farmers in the North East is far in excess of customer requirements in the area.
"Our small dairy in East Kilbride makes products including flavoured milks and potted cream and we believe that we can gain important efficiencies by relocating that production to Bellshill, which is nearby.
"We will enter the consultation with an open mind and will rigorously assess the situation and listen to our colleagues before arriving at a decision."
Image: Muller also produces salted, unsalted and lactic butter. Photo: Courtesy of SOMMAI/FreeDigitalPhotos.net.
