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Arla reviews operations and outsources logistics to Bidvest 07 March 2016

Deal follows proposed closure of Arla Hatfield Peverel dairy

After an extensive review into its processing requirements across the UK, Arla Foods has announced its intention, subject to consultation with those affected, to close its fresh milk processing production facilities at its Hatfield Peverel dairy in Essex.

The proposal will result in the potential closure of Hatfield Peverel by the end of July 2016, with the loss, or relocation of up to 200 jobs.

As a result of the proposed closure and following a full review of the outbound logistics operations currently run from Hatfield Peverel, Arla is also recommending an improved model that would outsource this operation to Bidvest Logistics.

If the proposal is accepted, it is likely that around 32 impacted employees would be transferred to Bidvest Logistics through a phased process. This would bring the potential number of people impacted by the changes at the Hatfield Peverel dairy to around 230.

The Company’s Aylesbury site, which now has the ability to process one billion litres a year after a significant ramp up operation since it opened in 2014, will take on the majority of Hatfield Peverel’s processing and smaller volumes of milk will be delivered to other Arla fresh milk dairies dependent on customer requirements.

The proposed change follows Arla’s significant investment of more than £150 million in its state-of-the-art fresh milk facility at Aylesbury. It is the world’s largest dairy operation of its kind and was built to support Arla’s long-term strategy to increase the volume of milk being processed in the UK and support Arla’s significant growth plans for its largest market.