400 jobs to go as Express closes two dairies
29 July 1999
400 jobs to go as Express closes two dairies
By Vicky Houchin
EXPRESS Dairies is to cut 400 hundred jobs by closing two of the dairies acquired last month as part of its purchase of Glanbias UK liquid milk operations.
The dairy company plans to close the Island Road UHT milk processing plant in Birmingham by the end next month, losing 70 jobs.
Manchesters Hyde Dairy plant will close in November, resulting in a further loss of 330 jobs.
The company said 130 new jobs in production and distribution would be created at Expresss Liverpool, Manchester and Wakefield sites.
Neil Davidson, chief executive of Express, said that Glanbia had been acquired to reduce overcapacity and optimise dairy utilisation.
“The measures we are proposing today will enable our Manchester and Liverpool dairies to operate at maximum efficiency,” he added.
A spokeswoman for Express said the company would continue to purchase the same quantity of milk and that production would not be reduced, but moved elsewhere.
She confirmed that producers who had formerly supplied the Island Road plant would continue to supply Express Milk Partnership. “Well still take their milk, although it will now go to our Ashby plant in Leicestershire.”
Production from the Island Road plant will transfer to Expresss existing UHT facilities at Crediton, Devon and Kirkcudbright, Dumfries and Galloway.
Bottling of milk for the doorstep market will transfer to Expresss dairies in Wakefield and Liverpool.
Production of milk in non-returnable containers would transfer to Expresss Manchester and Liverpool dairies.
Express currently sources 50% of its milk requirements through the Express Milk Partnership.
The company plans to keep its milk supplies unchanged, although the spokeswoman admitted that the 13 contracts acquired through the purchase of Glanbia would be reviewed.
“As the contracts come up well review them, although this will take time,” she added.