Dairy company Arla Foods is set to unveil plans for a £10m investment in a milk processing plant in Scotland. The investment comes as part of Arla’s deal to supply Asda stores throughout the UK.

Arla will be installing milk-processing equipment at a plant owned by the Cheese Company in Lockerbie. The plant will be used to supply fresh milk to 34 Asda stores in central Scotland.

Analyst’s view this move as the first shots in a potential milk war between Arla and rival Robert Wiseman, the dominant milk company in Scotland.