Müller Milk & Ingredients has confirmed plans for a £60m restructuring project to upgrade its network of fresh milk and ingredient dairies in the UK.

The firm also intends to close its Chadwell Heath dairy in North East London over the next 15 months.

While the upgrade is expected to provide 180 job opportunities, the closure may result in the displacement of 389 permanent jobs. Müller has committed to support those affected throughout the wind-down period.

Müller Milk & Ingredients' managing director Andrew McInnes said: “We understand that the decision to wind down processing operations at Chadwell Heath directly affects a number of our colleagues, but unfortunately this announcement is unavoidable.

"We understand that the decision to wind down processing operations at Chadwell Heath directly affects a number of our colleagues, but unfortunately this announcement is unavoidable."

"By improving operational efficiencies and capabilities at various sites, we aim to transform the milk and ingredients sector, benefitting our customers, consumers, colleagues, and farmers.”

Through this move, Müller intends to ensure its future sustainability, competitiveness, and increase its production capabilities for a large range of fresh milk products. The firm has carried out a review process prior to the move, which included discussions with employees, unions and other representatives.

The £60m investment will be used to restructure the Severnside, Foston, Droitwich, Manchester, and Bridgwater processing facilities. The Foston facility will receive a new filling line and Severnside will see a new flavoured milk and fresh cream excellence centre, while processing capabilities will be improved at Droitwich and Bridgwater sites.

The firm has previously confirmed plans to also invest £15m to the Scottish fresh milk and ingredients centre of excellence at Bellshill.