Müller Milk & Ingredients (MMI) intends to invest £60m in five facilities and close Chadwell Heath dairy in the UK.

The firm plans to invest the amount in the upgrade of its processing facilities at Severnside, Foston, Droitwich, Manchester, and Bridgwater.

This investment will boost capabilities and operational efficiencies at its facilities. The enhancements will create up to 180 new jobs.

"We have taken time to assess the best way forward and to model and design a national processing and logistics network."

This move is part of Müller's plan to invest over £100m across its Müller Milk & Ingredients and Müller Yogurt & Desserts businesses over the next 18 months.

Müller Milk & Ingredients managing director Andrew McInnes said: “When we acquired Dairy Crest’s fresh milk dairy and distribution operations just under a year ago, we made it clear that change would be required to secure a better and more vibrant future for the dairy sector in Britain.

“We have taken time to assess the best way forward and to model and design a national processing and logistics network, which fully meets the needs of our customers throughout the country now and in the future.

“We are pleased to confirm proposals to invest in the capabilities of our dairies at Severnside, Foston, Droitwich, Manchester and Bridgwater, having already confirmed plans to upgrade our dairy at Bellshill.

“By improving operational efficiencies and capabilities at these sites, we can unlock new innovation to transform the milk and ingredients sector, benefitting our consumers, customers, colleagues and farmers.

The company also intends to close operations at its Chadwell Heath dairy in London over the next 18 months, a move that will see 389 permanent jobs being cut.

“Regrettably, it is clear that the dairy at Chadwell Heath is no longer economically viable. It requires complete overhaul and modernisation and in an industry which has struggled for many years with excess and inefficient processing capacity, we cannot justify committing the level of investment which would be required to bring this site to an acceptable and sustainable level of performance.

“Our proposal is to maintain and develop our distribution footprint in south-east England, but to wind down processing operations at Chadwell Heath over an 18-month period. We will enter the consultation with an open mind and a determination to listen to our colleagues and rigorously assess the situation in Chadwell Heath before arriving at a decision.”

The dairy company plans to begin a 45-day consultation on 10 November.

It intends to work with employees impacted by the move and explore all options, including offering them alternative roles within the company.