The proposal would see the production of butter, potted cream and milkshake brand FRijj potentially relocated to other sites in Müller’s network, as part of the dairy processor’s £100m Project Darwin cost and margin improvement programme
Müller will launch a 45-day consultation period on 17 February to examine ways to simplify and restructure operations at the site, in a bid to bring it into line with current and future customer requirements.
Rob Hutchison, operations director at Müller Milk & Ingredients, said: “While MMI has made significant progress in the past year, our business is still loss-making. We must maintain our momentum if we are to achieve sustainable profitability.
“Cost of production at Severnside is higher than any of our other sites and this review will look at how we can best meet the needs of our customers, in a manner that is much more simple and cost-effective.”
Müller said it was too early to assess the impact on jobs, but if a decision were taken to proceed with the proposal, affected employees would be offered opportunities to relocate or be supported should that not be possible.
“We are taking action to ensure we can achieve cost leadership in everything that we do, while meeting the requirements of our customers both now and in the future,” Hutchinson added.
“We understand that this is an unsettling time for our employees and will work hard with them and their representatives during this period to find the right solutions.”
Meanwhile, Meat processor Tulip has announced 49 redundancies at its Bodmin factory, after agreeing a recovery plan to secure the future of the site that would result in several operational adjustments.