Freshways has announced plans to open a state-of-the-art dairy processing hub in West Bromwich, capable of processing 500 million litres of fresh British milk a year.
The investment of around £25m in the West Midlands town would create one of the “most modern and efficient dairy processing facilities in the UK”, the supplier said.
The site will also create 200 jobs, with more likely as the plant scales up.
Commissioning will begin next month, with the site likely to be operational by the end of the year.
“Our business is growing fast as we continue to win new customers every day,” said Bali Nijjar, MD of Freshways. “We needed to add additional processing capacity while maintaining the quality and freshness Freshways has become known for.
“This new West Midlands dairy hub is ideally located to collect more fresh milk from our loyal British farmers, processing and packing it efficiently and sustainably, before moving it on to our customers.”
The new plant will support Freshways’ national distribution network and its Milk & More doorstep delivery business, which the business acquired last year.
Last week, Unite launched a recognition campaign at Milk & More after a deterioration of industrial relations.
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Freshways sourced the site’s specialist dairy processing equipment from India in one of the first major deals to complete since the UK and Indian governments signed a Free Trade Agreement in July.
Over 200 pieces of specialist equipment for the project, including five stainless steel silos weighing in at 17 tonnes each and capable of holding a total of 625,000 litres of milk, have been manufactured by IDMC, based in Gujarat.
A team of Indian engineers are overseeing the installation and will train Freshways staff in how to operate the specialist equipment.
“We can’t wait to get started in the West Midlands and look forward to welcoming our new colleagues to the business,” said Nijjar. “Our Indian engineering partners and the local contractors are working around the clock to get things ready and we very much hope to start bringing millions of litres of delicious fresh British milk to the site by the end of the year.”
The investment was a “vote of confidence” in the region, said West Midlands mayor Richard Parker.
“It also clearly shows how strong trade relationships with India benefit our region – bringing specialist Indian engineering to create one of the UK’s most advanced dairy facilities on our doorstep,” said Parker.
Recruitment for the new site will get underway shortly, with opportunities including engineering, quality assurance, food safety, logistics and support services roles.
The business has also pledged its support for the mayor’s youth employment plan.
It wants to actively encourage young local talent to explore careers in the dairy and food sector and will engage with local schools, colleges and universities, including through job fairs and campus talks, to discuss a range of opportunities from work placements and apprenticeships to full-time roles.
This investment announcement comes as Freshways has slashed its farmgate milk price by 6ppl due to issues with supply outpacing demand.
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