Müller UK & Ireland has announced the next phase of investment at its Skelmersdale site in West Lancashire, as global demand for dairy products is forecast to grow over the coming decade.

The company is investing in expanded capacity and capabilities to strengthen the site’s role as a major producer and exporter of British-made powdered milk products, using milk sourced from UK farms. As part of plans to develop Skelmersdale into a flagship milk-drying and dairy ingredients facility, Müller has confirmed it will build a dedicated in-house logistics hub at the site.

The new logistics hub will be able to accommodate up to 65 milk collection vehicles and will support the daily collection of raw milk from supplying farms. To support the site’s expansion, Müller said it plans to create up to 90 new roles linked to the logistics hub, including positions for drivers, driver trainers, vehicle technicians and logistics support staff.

Alongside the investment, Müller is proposing to move fresh milk and cream production from Skelmersdale to other locations within its existing UK network, following discussions with long-term retail partners. The company has begun a collective consultation with employees at the site to assess future operational requirements.

Under the proposals, Skelmersdale would become a centre of excellence for milk balancing, aimed at improving supply chain resilience and supporting the wider dairy industry. The review could place up to 90 roles at risk of redundancy, although Müller said the final outcome will depend on the consultation process and that it will explore opportunities for redeployment across the site and its wider UK network.

Rob Hutchison, CEO of Müller Milk & Ingredients said:

“We’re investing in a flagship facility that will set new standards for milk drying, dairy ingredients products and logistics, creating a bright future for Müller Skelmersdale.

“Our investment will lead to better service and quality for our customers at home and abroad and new opportunities for local people.

“Change is never easy, and consultations can be unsettling. We take this process seriously and will carefully consider every option before making decisions.

“We’re confident in the plans underway and the future developments we’re working on at Müller Skelmersdale – initiatives that will strengthen our position and deliver benefits across the entire dairy supply chain. We are creating long-term and highly-skilled local job opportunities and putting Skelmersdale firmly on the map as a key player in the UK dairy industry.”

The company said it will conduct the consultation in an open and constructive manner, evaluating all options before making any final decisions.