Arla Foods has announced plans to invest nearly £90 million into its Lockerbie site in Scotland, creating a new UHT Centre of Excellence that could generate 90 new jobs in the area.
The investment aims to support the farmer-owned cooperative’s future growth ambitions and strengthen its manufacturing network in the UK.
The Danish-Swedish multinational, which owns brands such as Lurpak and Cravendale, will transform the Lockerbie facility into a specialized center for the production of UHT and Lactofree milk. This follows a previous £34 million investment into the site’s cheddar production announced in 2024.
“The proposed investment into Lockerbie showcases our commitment to driving change in the UK, and supporting the future of British dairy,” said Bas Padberg, managing director of Arla Foods UK.
The investment comes with significant changes to Arla’s UK operations. The company has proposed closing its Settle site in North Yorkshire and relocating some operations from its Stourton facility in Leeds to Lockerbie. The Settle closure could put up to 120 jobs at risk, with the site expected to close in 2027.
Fran Ball, VP of production at Arla Foods, emphasised that while the announcement is positive for Lockerbie, the company’s priority is supporting affected employees:
“Whilst this is an exciting announcement for Lockerbie our priority right now is to support our Yorkshire colleagues. 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.”
The investment has been welcomed by local representatives, with David Mundell, MP for Dumfriesshire, describing it as a “genuine vote of confidence in the local workforce.” He added: “The dairy sector is a key contributor to our economy here in Dumfriesshire, and if confirmed, this significant investment would greatly aid in preserving essential local jobs and supporting the farmer-owned cooperative.”
NFU Scotland stated that the multi-million-pound investment in milk processing in Scotland is “a huge vote of confidence in this nation’s ability to produce milk.”
Arthur Fearnall, Arla Foods UK board director and farmer within the cooperative, expressed pride in the investment: “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.”
The Lockerbie creamery has been creating distinctive cheddars for 80 years, known for their perfect balance of tangy and sweet flavors. This new investment builds on Arla’s record global investments of more than €1 billion in 2024, which included over £300 million across its UK sites.
