Dairy Crest Integration.

Dairy Crest have announced the latest phase of their integration plan for the recently acquired Unigate dairy and cheese businesses.

Dairy Crest will establish their second, and the UK's largest, super dairy at Severnside, Gloucestershire, following an investment of [pound]23m. which will more than double the current capacity and create 320 new jobs. The Severnside dairy expansion will replace existing capacity and the plant will be capable of processing 500 million litres of milk pa by September 2002. The dairy will become the company's centre for the processing, packing and distribution of milk in cartons and polybottles to multiple retail customers in the Midlands, Southern England and Wales. A further investment of [pound]16m, will enhance the dedicated facility for producing added value retail milk products including organic milk, regional milks, fresh flavoured milk drinks, milk shakes and potted cream.

The Severnside development, which replaces processing capacity at existing sites, will result in the closure of the liquid milk dairies at Thornbury, South Gloucestershire in November 2001, Marshfield, Cardiff in February 2002 and Kidlington, Oxfordshire in September 2002,

Other highlights of the second phase to achieve the efficiencies and financial benefits outlined at the time of the Unigate acquisition in July 2000 include: consolidation of Stilton processing at Hartington, Derbyshire following the completion of [pound]10m. investment; concentration of their cheese prepacking at Maelor, Clwyd and Frome, Somerset; establishment of Crudgington, Shropshire as the centre for retail dairy spreads, packet and speciality butters; significant increase in ingredients processing efficiency at Chard, Somerset; and finally the closure of five processing plants.