Type
Internal restructuring
Country
United Kingdom
Region
Scotland;
Location of affected unit(s)
Aberdeen and East Kilbride
Sector
Manufacturing
Manufacture Of Food And Beverage
Manufacture Of Food Products
10.51 - Operation of dairies and cheese making

220 - 229 jobs
Number of planned job losses
Job loss
Announcement Date
31 March 2016
Employment effect (start)
20 June 2016
Foreseen end date

Description

German-based multinational Muller has announced plans to close two of its sites in Scotland which will result in the loss of between 220 and 229 jobs. The sites due to close are in Aberdeen in the North East and East Kilbride in South Lanarkshire, which employ approximately 89 and 131 workers respectively. The company simultaneously announced that it is to invest GBP 15 million (€18.6 million) over three years at its Bellshill site in Lanarkshire. Farmers who had previously supplied the Aberdeen site will now have to find other buyers or pay a GBP 0.0175 (€0.02) per litre surcharge to cover the extra costs of delivery. A 45 day consultation has now started on the affected jobs, though it is not yet known when the closures are expected to take effect. 

Update 31-05-2016: Following the consultation period, Muller have provided further details about the time frame for the planned closures of the sites in Aberdeen and East Kilbride.  The Aberdeen site will close by the middle of June 2016, whereas the East Kilbride site will remain operational for a further 18-24 months, which will allow time for production to be moved over to the site in Bellshill. 


Sources

  • 1 April 2016: BBC Website
  • 31 March 2016: The Herald Scotland
  • 31 May 2016: BBC Website

Citation

Eurofound (2016), Muller, Internal restructuring in United Kingdom, factsheet number 86923, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/86923.