Arla Foods and XPO Logistics have announced plans to develop a new UK central distribution centre (CDC) that will handle all Arla’s UK chilled palletised products from late 2027.
Currently under development at Prologis RFI DIRFT in Northamptonshire, the facility will bring Arla’s chilled dairy products, such as cheese, butter and yoghurts, into a single, centralised location.
As part of a long-term strategic partnership, XPO Logistics is supporting Arla Foods beyond day-to-day operations, bringing expertise in transformation, automation and scalable operating design
In a further extension to this partnership, XPO is project managing the delivery of the CDC and will run the site once it becomes operational.
“Consolidating our chilled pallet operations into a single, advanced facility in Northamptonshire is a strategic leap forward for Arla,” said Fran Ball, SVP UK supply chain for Arla Foods UK.
“By partnering with XPO Logistics and Prologis, we are improving the resilience of a critical part of our supply chain and making meaningful progress on reducing waste and road miles.”
The site at Prologis RFI DIRFT is a major road and rail distribution hub, situated adjacent to the national motorway network (M1 J18) and the West Coast Main Line.
The new CDC illustrates how XPO Logistics works with major brands to build future-ready supply chains.
Dan Myers, senior vice president, dedicated supply chain – Europe, XPO Logistics, commented: “This future-ready CDC will play a key role in ensuring that Arla continues to deliver great products whilst improving the resilience, sustainability, and efficiency of its supply chain.”
The announcement follows a €107.7m (£90m) investment at Arla Lockerbie to create a UHT and lactose-free milk centre of excellence, and more than €355m of UK investments across five sites, announced in 2024.
Earlier in January, Prologis appointed Winvic to deliver 1.3 million ft² M&S distribution centre at Daventry International Rail Freight Terminal (DIRFT).
