The move is part of a wider plan to invest close to £90m into its Lockerbie site in Scotland, which Arla intends to turn into Centre of Excellence for the production of UHT and Lactofree milk.
This follows a £34m investment into Lockerbie’s cheddar production in 2024.
In addition to the job losses in Settle, which is due to close in 2027, the investment will potentially impact some employees based at Arla’s Stourton site, but the firm expects them to be redeployed in equivalent roles.
The firm will shortly enter into a collective consultation period with all colleagues impacted by today’s proposal.
Speaking about the proposals, Fran Ball, vice president of production at Arla Foods, said that the announcement was part of a broader strategy aimed at strengthening the co-operative’s manufacturing network and futureproofing its dairy production.
“Whilst this is an exciting announcement for Lockerbie our priority right now is to support our Yorkshire colleagues,” Ball continued.
“At Arla we are committed to supporting everyone through periods of change and we understand that this will be a time of uncertainty for colleagues who work across our Yorkshire sites. We will be entering into a period of consultation with everyone affected by these proposals, announced today.”
Arla Foods UK board director and farmer, Arthur Fearnall, added: “We are incredibly proud to see this significant investment proposed for Arla’s Lockerbie site.
“We’re excited to see how this progresses over the coming years as we continue to work together to ensure all Arla farmer owners receive the best price for their milk.”
GMB responds
Trade union GMB, which represents a number of Arla employees, criticised the decision and called on the firm to consider all available alternatives.
“If Arla’s proposal to close goes ahead, it will be a devastating blow for the dedicated workers at Settle and for the local community which relies on this key employer,” said GMB organiser Deanne Ferguson.
“It will have a significant economic and social impact. GMB will stand side by side with members to make sure they are fully supported throughout this difficult period.
“We will now begin urgent discussions with Arla to explore all possible options to protect jobs. We call Arla and all stakeholders to engage in full and transparent discussions about the future of the workforce and to consider all available alternatives to compulsory redundancies.”
