Shropshire site set to benefit from dairy’s giant’s restructuring plans
The Shropshire cheese packaging site of global dairy company Arla Foods is set to benefit from a series of efficiency measures as the company pushes ahead with a major restructure which will see a number of other sites close.
Arla is proposing the integration of all its cheddar cheese packing lines into its Oswestry packing facility, which will result in the closure of its smaller Malpas and Lockerbie packing operations, proposals which could put around 154 roles at risk by the end of 2018.
It said the plans were to enable the company to optimise its cheddar cheese production as well as improve efficiencies consolidating operations across its production and packing sites, where it currently has capacity which is not currently being fully utilised.
Under the plans, Arla proposes to cease production at its Llandyrnog creamery, moving cheddar cheese volumes to its Taw Valley and Lockerbie creameries.
Earlier this year, farmer-owned Arla Foods launched a three-year programme to achieve more than 400m euro savings and efficiencies and transform the business into a “stronger and more competitive company”. The programme, called Calcium, aims to reshape Arla’s organisation to focus even more on the frontlines of the business, where it says the value exchange takes place with customers and consumers.
Other plans under the restructure include the streamlining of the company’s corporate operations and support functions, including . finance, legal and IT, corporate strategy, member relations, HR and corporate finance – a move which would affect 195 staff.
Arla said the impact is predominantly at the company’s head office in Aarhus, Denmark, however with smaller numbers of positions affected at the company’s administrative offices elsewhere in Europe.
The restructure is running at a time when Arla faces exposure to the British pound and unfavourable developments in commodity markets.
“We want to achieve the goal of building a stronger, more competitive Arla, which serves our customers and consumers better and provides higher returns to our farmer owners and that requires us to make tough decisions. In order for Arla to continue to deliver on our Good Growth 2020 strategy that brings innovative dairy products to millions of consumers around the world, we must become one of the most agile and frontline-obsessed companies in today’s fast-paced and complex global food industry,” says CEO of Arla Foods, Peder Tuborgh.
“It is never easy to say goodbye to valued colleagues, especially in these circumstances, and I would like to thank those people who are leaving us for the contribution they have made to Arla Foods, and I wish them well for the future. We will provide our full support to those colleagues affected during this process.”
