In a six-month trading update, the company stated it intended, subject to consultation, to close its dairy at Bamber Bridge, Lancashire, in July 2004.
Its glass bottling line at Hatfield, Essex, will also close in May 2004. The decisions will result in the loss of 310 jobs at the two plants.
A full review of central functions, following the combination of the two head offices, will also result in a number of job losses, although the details have yet to be announced.
Arla said it was consulting with staff affected as well as with trade unions.
It added that it would be making every effort to help employees find suitable alternative employment.
Meanwhile, the company is also planning to invest £20m into its milk brand Cravendale to meet increasing demand.
The investment would be made at the company’s new Stourton dairy, which is on track to open in October 2004 and which will complement the existing Cravendale line at Hatfield. Arla said a further £12m investment into its Manchester dairy would also be completed by June 2005.
The Express home delivery business was described as continuing to outperform the market and milk volume decline was held at 10%.