In an attempt to save £100 million, dairy giant Müller is considering closing one if its manufacturing sites. Müller Milk & Ingredients has announced plans to review its network of dairies as part of its Project Darwin programme, which was launched in February.
A 45-day consultation process will be starting to assess the current and future utilisation and capacity requirements at its network of six dairies and then the outcome could be determined. The six dairies under review are Bellshill in Scotland, Manchester, Foston, Droitwich, Severnside and Bridgwater.
“Project Darwin is making excellent progress with the whole workforce fully engaged in securing a vibrant, progressive future for our fresh milk business and very positive collaboration with customers who share our desire to reinvigorate this important sector,” said Müller Milk & Ingredients chief executive Patrick Müller.
“It is a matter of considerable regret that we must consult on steps which could result in a restructuring of our dairy network and capacity but we must ensure the sustainability of our business and address potential over-capacity in our network,” he continued.
Furthermore, the business has also revealed plans to enter a logistics partnership with Culina Group, a Müller Group sister company. From 1st June Culina Group will assume day to day management control of MMI Distribution and all 2,500 employees will remain part of Müller UK & Ireland and will see no change to their terms and conditions of employment.
Responsible for MMI Distribution and all of the current MMI logistics leadership team will be Ian Smith of Culina Group. MMI Distribution will assume control from the point that vehicles have been loaded for delivery at MMI’s network of six dairies to the point that products are successfully delivered directly to customers or to our network of depots.
Tanker operations bringing milk from farms to MMI’s dairies will continue to be managed by MMI, as before.
“The distribution business partnership with Culina Group, a sister company within Müller Group, will put together the two major chilled logistics networks in the UK, ensuring that we can further build upon our reputation for great customer service at the lowest cost,” added Patrick Müller.