Jobs slashed at Express Dairies

25 January 2000



Jobs slashed at Express Dairies

By Vicky Houchin

EXPRESS Dairies has sought to reassure milk producers after announcing almost 500 redundancies following its purchase of Glanbia UK last June.

The former Glanbia-owned Perry Barr dairy in Birmingham will be closed with its associated regional administrative offices by late spring this year.

But farmers will be able to continue on their present contracts, and milk deliveries will be taken to nearby Express plants, said the company.

Milk bottling for Expresss Direct Service business will transfer to its dairies in Ruislip, Nottingham and Liverpool, it announced on Tuesday (25 January).

Production of milk in non-returnable containers will transfer to its plants in Ruislip and Ashby-de-la-Zouch.

Cream processing will move to Yorkshire and Somerset.

Express intends to close the Soho Street plant in Birmingham and business will transfer to other depots in the area.

The company also plans to discontinue its distribution operations in Salisbury, operating from the site of the former Glanbia dairy.

The closures will mean the loss of 460 jobs in production, distribution and administration, although the company claims to be creating about 90 new jobs.

An Express spokeswoman said the closures would not effect milk suppliers and all contracts would be maintained at present.

But cost savings will not be passed back to producers.

“Theres been no weakening in the value of the Pound or strengthening in commodity prices,” the spokeswoman said.

“At this time, the answer is no.”

Chief executive Neil Davidson defended the decision, saying it would reduce overcapacity in the industry and deliver “significant cost savings.

“High levels of customer service and improving the long term prospects of our shareholders, suppliers and employees,” he said.