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Freshways, one of the UK’s largest independent dairy suppliers, has unveiled plans for a £25 million investment in a state-of-the-art dairy processing facility in West Bromwich.

This new hub is set to increase the company’s processing capacity by 25%, enabling the handling of up to 500 million litres of fresh British milk annually.

The investment comes in response to a significant uptick in orders from Freshways' food service and retail customers, following the successful relaunch of its main dairy products earlier this year.

The new facility is expected to create at least 200 jobs and will play a crucial role in supporting the Mayor of West Midlands’ Youth Employment Plan by providing local employment opportunities.

Bali Nijjar, managing director of Freshways, highlighted the necessity of the new plant: “Our business is growing fast as we continue to win new customers every day. We needed to add additional processing capacity while maintaining the quality and freshness Freshways has become known for.”

The new processing hub will feature bespoke machinery sourced from India, marking one of the first major deals completed since the recent UK-India Free Trade Agreement.

Over 200 pieces of specialised dairy processing equipment have been manufactured by IDMC in Gujarat, including five stainless steel silos, each weighing 17 tonnes and capable of holding a total of 625,000 litres of milk.

This collaboration not only enhances the technological capabilities of the facility but also positions Freshways as a key player in fostering international trade relationships.

The West Midlands dairy hub will serve as a critical node in Freshways' national distribution network, processing milk sourced from hundreds of British dairy farms before distributing it to over 15,000 food service and retail customers through 15 distribution centres.

This investment is expected to bolster the UK’s dairy supply chain, ensuring a steady supply of quality British milk and dairy products.

In addition to traditional retail and foodservice channels, the new capacity will support Freshways’ Milk & More doorstep delivery service, which has already signed up over 30,000 customers in its first quarter since acquisition.

As construction of the facility progresses, Freshways is preparing to launch a recruitment drive aimed at filling various roles, including engineering, quality assurance, food safety, logistics and support services.

The company is committed to engaging with local schools, colleges and universities to promote career opportunities within the dairy sector, aligning with the mayor’s initiative to foster youth employment.

West Midlands Mayor Richard Parker praised the investment: “This major investment in West Bromwich will support British dairy farming, bolster our food supply chain, and create at least 200 new jobs for local people”.