Galloway is facing a “devastating” jobs blow with an award-winning yoghurt producing plant under threat of closure.
Dale Farm Ltd is considering shutting Rowan Glen at Palnure, as well as its facility in Cumbria, due to “excess capacity and declining demand”.
Forty-eight people are employed at the site near Newton Stewart.
The proposed closure was due to be discussed at the council’s Wigtown area committee yesterday.
Chairman Willie Scobie said: “I am sure I don’t need to spell out how devastating a blow this would be for the Newton Stewart, Palnure and Creetown area if this factory were to close.
“This would cause hardship to so many families who depend on their job at Rowan Glen.
“I would hope there is a plan in place to see how we could work with the company in the first instance to avoid any redundancies but we also have to think about discussing with other creameries, like the Galloway Cheese Company in Stranraer, to see if there would be any interest in any kind of takeover.”
Rowan Glen was launched in 1993 and bought by dairy co-operative Dale Farm in 2002 but the Belfast-based firm is now planning a restructuring of the business.
A statement said: “This restructure could result in a proposal to cease operations at these two facilities.
“Dale Farm recognises and appreciates the loyalty, hard work and commitment from employees at both sites. This consideration has been prompted by a thorough review of Dale Farm’s operations, examining which elements of the business are sustainable for the future.
“These two manufacturing sites compete in a market characterised by excess capacity and declining demand for their primary products. Aside from the market challenges, the sites are experiencing significant inflation and require major investment in order to remain viable.
“Dale Farm is now entering into a period of consultation with those impacted. Dale Farm will work closely with all employees and representatives, providing ongoing support throughout this process.”
The council has called on South of Scotland Enterprise to work with the company on an alternative solution and has also alerted Partnership Action for Continuing Employment (PACE).
SOSE chief executive Jane Morrison-Ross said they had been in discussions with Dale Farm and were looking to see what support they could provide to “mitigate any redundancies” and find “a sustainable future” for the firm.
She added: “We will continue to do everything we can to support Rowan Glen’s staff as the situation develops, whilst also considering the implications of these potential redundancies on the surrounding rural area.”
South Scotland MSP Colin Smyth said: “This is devastating news for Newton Stewart and in particular the staff who are potentially facing losing their jobs.
“Unfortunately, I fear that this won’t be the last business to look at closing down its sites and I have already been in touch with the Scottish Government and local agencies to urge them to provide as much support to secure a future for the Rowan Glen site and those local jobs at risk.”
Galloway and West Dumfries MSP Finlay Carson has discussed the situation with both Dale Farms boss Nasair Hussan and Scotland’s Business Minister Ivan McKee, as well as SOSE officials, the council and the dairy nexus team at SRUC’s Barony campus.
He said: “Given the importance of the dairy and food and drink industry to the region my focus will be on trying to ensure production continues locally. Most importantly, no stone should be left unturned in helping secure the workforce positions at other Rowan Glen plants or, indeed, in other employment opportunities in the area.
South Scotland MSP Emma Harper has also offered her “full support” to secure the future of the site.
She said: “Dairy processing and, indeed, food and drink is hugely important to Dumfries and Galloway and the wider economy of south west Scotland which is home to 48 per cent of Scotland’s dairy herds. I will therefore do all I can to save the Rowan Glen site and its employees.”
