Muller dairy in East Kilbride faces closure
229 jobs at risk at both the firm's plants in East Kilbride and Aberdeen
Muller plans to close dairies in Aberdeen and East Kilbride with the potential loss of 229 jobs.
The plans were announced as part of a "strategic review of its network'', and Muller said a 45-day statutory consultation to examine the potential winding down of the plants will now begin.
The company - which also plans to invest £15 million over the next three years at its largest dairy at Bellshill - said the Aberdeen and East Kilbride sites "are operating well below full utilisation''.
Directors said "the status quo is just not viable'' and described Muller's Scottish dairies as inefficient and costly''.
More than 40 farmers who supply milk to the Aberdeen dairy could also be affected if the closure is approved. Muller said they will be offered the opportunity to continue supplying the business conditional on the acceptance of a 1.75p per litre transport charge to take it to Bellshill.
The farmers will have to find other buyers if they do not accept the charge. Andrew McInnes, managing director of Muller Milk & Ingredients, said: "We aim to reinvigorate our fresh milk and ingredients business in Scotland and propose to invest to make Bellshill a centre of excellence for dairy, benefiting consumers, customers, employees and farmers.
"It is important to stress that the status quo is just not viable in the medium term. Our Scottish dairies are inefficient and costly, which is putting a brake on the innovation and investment needed to stimulate new demand for dairy products.
"Our Aberdeen dairy is operating at less than 40% of its capacity and milk production from farmers in the north-east is far in excess of customer requirements in the area.
"Our small dairy in East Kilbride makes products including flavoured milks and potted cream and we believe that we can gain important efficiencies by relocating that production to Bellshill, which is nearby.
"We will enter the consultation with an open mind and will rigorously assess the situation and listen to our colleagues before arriving at a decision.''