Maria Stokes, Bord Bia London

Arla Foods has announced plans to invest £70m building the world’s largest dairy plant on the outskirts of London. Arla currently processes 28% or 1bn litres of UK liquid milk, and this move creates a platform for Arla to grow its fresh milk business. Operational in 2012, Arla claim it will be the world’s most efficient milk processing facility with world-class environmental credentials.

This move is as a result of re-structuring within the company. In January, the company said it had decided to shut its site in Northallerton, North Yorkshire and switch cream production to its facility in Stourton. In April, Arla said it would cut 250 jobs across its global operations, including in Sweden, the UK and in other unnamed markets. However, this site sees the creation of up to 500 jobs in the as yet unnamed London site.

Peter Lauritzen, CEO of Arla Foods UK said: “Arla is totally committed to a long-term sustainable future in the UK and the construction of the new dairy plant demonstrates that commitment.”

This move further underlines the level of consolidation currently underway in the UK diary industry.