Milk Link, the UK’s largest cheese maker owned by over 1,600 dairy farmers, has today announced a major £20 million investment to transform its Lockerbie Creamery - enhancing both its capacity and capabilities and making it one of the UK’s leading Cheddar production facilities.

The investment will make Lockerbie the largest dairy processing facility in Scotland and one of the largest and most advanced creameries in the UK.  The site will benefit from a major redevelopment with the installation of the latest processing technology increasing annualised production by 12,000 tonnes to over 37,000 tonnes of cheese per annum.

The major investment being made at Lockerbie will not only secure the long term future of the creamery but also help to provide a strong platform for the expansion of dairying in South West Scotland and the North of England.  In line with the new creamery’s increased processing capacity, Milk Link will now be actively recruiting additional Members in Scotland and the North of England to supply Lockerbie.

The investment will build further Lockerbie’s reputation for making great tasting, Show Champion cheese and improve further its product consistency and productivity. It will complement Milk Link’s other major Cheddar creameries – Taw Valley in Devon and Llandyrnog in North Wales – and enable the business to meet the growing demand from leading retailers, foodservice businesses, food processors and export customers for its high quality range of customer label and branded cheeses, butters and dairy ingredients.

Commenting on the investment Neil Kennedy, Chief Executive said, “Our investment at Lockerbie will transform the creamery and reinforce Milk Link’s leadership position in the production of high quality British cheeses.  At the same time, we believe it provides a timely boost to the dairying sector in South West Scotland and the North of England as we increase the volume of milk from the region going into value added dairy processing.

“The capital investment programme will be the largest undertaken to date by Milk Link and indeed is one of the largest investment projects in cheese manufacturing seen over the last 20 years in the UK.  It follows on from Milk Link’s major investments at Taw Valley in relation to a next generation whey processing plant and the building of a new soft cheese creamery at Cornish Country Larder’s Trevarrian site, both of which will be fully operational this Autumn.

“Work at the creamery will start later this year and will be completed by Autumn 2012.  Our decision to invest at Lockerbie reflects the growing demand for our quality British cheeses, the skill and dedication of our staff at Lockerbie and the potential of the South West Scotland and North of England milk field to supply us with increased milk volumes.”

Rural Affairs Secretary Richard Lochhead commented: “This is superb news for Lockerbie – ensuring that the creamery can look forward to a very bright future. As well as securing vital jobs, the creamery expansion will provide a boost for farmers as the amount of milk required increases to meet demand.

“We have been working with Milk Link on this project, along with Scottish Enterprise, which will help to secure a long term and vibrant future for the dairy industry in Scotland and in particular its heartland in the South West. 

“Milk Link’s investment is further recognition of the high quality of Scotland’s food and drink. With ingredients which are second to none – including, obviously, Lockerbie Cheddar – it is little wonder that our food and drink is increasingly becoming the first choice for consumers and suppliers, both here and abroad.”

Jim Watson, company growth support director, Scottish Enterprise, said: "This is a significant inward investment success and represents Milk Link's largest ever capital expenditure programme. It will substantially boost the local South West economy and will allow the Lockerbie Creamery to achieve its ambitious growth plans including increasing existing markets and targeting new overseas opportunities.

"Scottish Enterprise and Scottish Development International have worked with the company to secure this milestone project for Scotland. The Scottish dairy sector plays an important role in the overall food and drink sector and it's our job, along with partners, to create the right environment for these business to thrive. This is the second multi million pound investment in the food processing industry in recent weeks, reinforcing that investors see Scotland as an attractive place to business. By highlighting the opportunities Scotland has to offer, we can help create more jobs and more wealth for the Scottish economy.”

NFU dairy board chairman Mansel Raymond said, “The news of an investment on this scale in modern dairy processing is truly excellent news.

“The NFU has a vision for a vibrant and expanding industry, to reflect the growing global demand for quality dairy products. Investment of this type, not only on UK soil, but by a farmer owned cooperative business is very exciting.

“Milk Link’s plans not only represents investment in world class, efficient manufacturing capacity, but signals a business strategy, with growth in both domestic and export markets, at its core.

“The news will be welcomed by Milk Link members and wider NFU members alike, for whom this represents an opportunity to tap into added value markets for their milk.”