Arla Foods Announces £90 Million Investment in Scottish 'Centre of Excellence'

The UK's largest dairy cooperative, Arla Foods, has unveiled plans to invest £90 million in creating a 'Centre of Excellence' in Lockerbie, Scotland. This announcement marks a significant strategic move for the company to consolidate its manufacturing capabilities in the UK.

Arla aims to transfer operations from its Settle site and parts of its Stourton operations to Lockerbie. The company had previously committed £300 million toward site investments, including a £34 million allocation for cheddar production at the Lockerbie site. This latest investment is intended to 'future proof' its production operations within the UK.

The new Centre of Excellence will focus on the production of UHT and Lactofree milk and is expected to create new jobs in the Lockerbie area. Fran Ball, VP of production at Arla Foods, stated, “The proposals announced today form part of our strategy to strengthen our manufacturing network and futureproof dairy production in the UK, and whilst this is an exciting announcement for Lockerbie our priority right now is to support our Yorkshire colleagues.”

This development follows Arla's announcement of its 2024 annual results, which highlight record investments by the company. Bas Padberg, managing director of Arla Foods UK, mentioned the investment as a demonstration of Arla's commitment to fostering change in the UK dairy industry. He emphasized the industry's role in addressing the health crisis and providing nutritious food to the growing population.

Arthur Fearnall, Arla Foods UK board director and Arla farmer, expressed pride in the proposed significant investment for the Lockerbie site, remarking on the potential progress in the coming years and the company's ongoing efforts to ensure the best price for Arla farmer owners.