en.Wedoany.com Reported - Arla Foods has invested £114 million in its Lockerbie factory in Scotland to build a new-generation cheddar cheese production facility and a UHT and lactose-free centre of excellence. The factory processes over 600 million litres of milk annually, producing approximately 200 million litres of fresh bottled milk and 42,000 tonnes of cheese, which, according to the company, is enough to make around 840 million cheese sandwiches.
Arla Foods is co-owned by more than 7,200 dairy farmers, including over 1,800 UK farmers. The investment decision prioritised farmer welfare, with the factory located close to raw material sources; most milk comes from within an 80-kilometre radius, reducing transport costs and carbon emissions. David Boulanger, Global Head of Supply Chain, stated that the factory's integrated local network helps enhance supply chain resilience and cope with volatility.
The cheddar cheese facility upgrade costs £34 million, plus a £20 million anaerobic digestion unit, bringing the total investment to £114 million. An additional £90 million investment has been confirmed for UHT and lactose-free production to establish a centre of excellence. Fran Ball, Senior Vice President of UK Supply Chain, explained that the new cheddar cheese facility uses the latest generation of fermentation tanks to increase yield and automates the cutting process. The UHT centre introduces energy-efficient processes and adopts loading automation to improve operational efficiency.
As a farmer-owned cooperative, Arla is committed to creating maximum value for its farmer owners. The factory has implemented a multi-year apprenticeship programme to train dairy technology experts and engineers, and has launched a lean-based employee upskilling initiative. Fran Ball noted a blend of e-learning and traditional classroom training to meet current digitalisation and automation needs. Additionally, the company promotes a gender diversity strategy through three pillars: "Attract," "Develop," and "Retain," aiming to double the proportion of female applicants for UK supply chain roles by 2030.
Arla has committed to achieving carbon neutrality by 2050 and plans to reduce its supply chain carbon footprint by 63% by 2030. The anaerobic digestion unit in the Lockerbie investment can recycle waste to significantly cut the carbon footprint, and several dairy plants have been electrified in recent years. The company believes dairy is part of the sustainable solution and will continue to adjust its products to offer a new generation of sustainable dairy.
This investment is expected to create around 90 new jobs at the Lockerbie factory. Meanwhile, Arla announced plans last February to close its Settle factory in North Yorkshire as part of the Lockerbie consolidation, a decision affecting approximately 130 skilled workers.
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