First Milk has secured £2m of funding from the Scottish government to overhaul its cheese-making site on the Mull of Kintyre.
New technology will replace the existing facility at First Milk’s site in Campbeltown, allowing for increased production and processing efficiencies.
“Throughout this process we have remained absolutely committed to our farmers on Kintyre, to the creamery and to the development of our world-famous Mull of Kintyre brand,” said First Milk chief executive Kate Allum.
First Milk had planned to sell the Campbeltown site to Tesco, which hoped to develop into a new store, and to move to another location in the town. However, negotiations fell through.
The Campbeltown dairy supports 100 jobs and takes milk from 38 supplying dairy farmers.