The PUNCHLINE Annual 2020

Jobs under threat at Müller’s Gloucestershire dairy

Jobs are at risk at Müller’s Severnside Diary in Stonehouse, following an announcement that the company is planning to relocate part of its production operations to other UK sites. The German dairy giant produces a range of items at the huge Oldends Trading Estate site, but says that the cost of doing so is higher there than in any of their other UK plants. And as part of a £100 million programme of cost and margin improvements, they are planning to move their butter, potted cream and FRiij milkshake processes elsewhere. Staff are currently under consultation and the firm is refusing to rule out the possibility of job losses. In an announcement, Müller said that the “cost of production at Severnside is higher than any of our other sites.” “Whilst it is too early to assess the impact on jobs, in the event that a decision is taken to proceed with the proposal, affected employees will be offered opportunities to relocate, or will be supported should this not be possible.

“Other products made at Müller’s Severnside dairy are not affected by the review.” According to the firm, private label flavoured milk, bulk cream, fresh milk and powder are also produced at the Severnside plant and those processes will be unaffected. Rob Hutchison, operations director at Müller Milk and Ingredients said: “Whilst MMI has made significant progress in the past year, our business is still loss- making. “We must maintain our momentum if we are to achieve sustainable profitability. “Cost of production at Severnside is higher than any of our other sites and this review will look at how we can best meet the needs of our customers, in a manner that is much more simple and cost-effective. “We are taking action to ensure we can achieve cost leadership in everything that we do, while meeting the requirements of our customers both now and in the future. “We understand that this is an unsettling time for our employees and will work hard with them and their representatives during this period to find the right solutions” l

is OUT February 2020 PUNCHLINE ANNUAL

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