The Gloucester site, which produces bulk butter, potted cream, FRijj, own-label flavoured milk, bulk cream, fresh milk and powder, “compares unfavourably in terms of cost, complexity and utilisation” with its other dairies, said Müller. It is proposing to relocate part of its operations at its Severnside dairy to other sites within its UK dairy network.
The company said it was too early to assess the impact on jobs in the event that a decision was taken to proceed with the proposal. But it said affected employees would be offered opportunities to relocate or would be supported should this not be possible.
Other products made at Müller’s Severnside dairy were unaffected by the review, it 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,” said Rob Hutchison, operations director at Müller Milk & Ingredients.
“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.
“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. 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.”
In April 2019, MMI warned that it may close one of its manufacturing sites as part of a review of its network of dairies. The six dairies under review were revealed to be Bellshill in Scotland, Manchester, Foston, Droitwich, Severnside and Bridgwater.