Arla Foods and XPO Logistics to launch distribution centre, centralising UK chilled operations by late 2027
- New Prologis RFI DIRFT** to centralise Arla’s chilled pallet operations from late 2027
- XPO Logistics multi-million investment to project manage the delivery of and operate the fully automated, temperature-controlled site
- The project reflects XPO Logistics´ expertise in scalable, technology-enabled Contract Logistics operations
Arla Foods, the UK’s largest dairy cooperative, and XPO Logistics, a leading provider of innovative and sustainable end-to-end supply chain solutions across Europe, today announce a further extension of their strategic partnership. This new chapter will transform Arla’s chilled network – creating a future-ready, more efficient, resilient, safe and sustainable operation – through a new leading UK central distribution centre (CDC) that will handle all Arla’s UK chilled palletised products*.
Currently under development at Prologis RFI DIRFT in Northamptonshire, UK, the new facility will bring Arla’s chilled dairy products, such as cheese, butter and yoghurts, into a single, centralised location. The move will strengthen Arla’s supply chain resilience, reduce road miles, and support more efficient distribution across the UK. XPO Logistics is project managing the delivery of the CDC and will operate the site from late 2027, when it becomes operational.
As part of a long-term partnership model, XPO Logistics is supporting Arla Foods beyond day-to-day operations, bringing expertise in transformation, automation and scalable operating design. The new CDC illustrates how XPO Logistics works with major brands to build future-ready supply chains.
XPO Logistics’ investment in state‑of‑the‑art automation will create skilled warehousing roles in the region, including automation operations, maintenance, quality, inventory control, and safety. Appropriate training and upskilling for advanced automation will be provided by XPO Logistics as part of the recruitment and onboarding process.
Fran Ball, SVP UK Supply Chain for Arla Foods UK, comments: “Consolidating our chilled pallet operations into a single, advanced facility in Northamptonshire is a strategic leap forward for Arla. 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.”
Dan Myers, Senior Vice President, Dedicated Supply Chain – Europe, XPO Logistics, said: “Arla stands for quality; their products are loved and trusted by every household in the UK. 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. Working together, we’re driving positive strategic change which will support Arla’s business to continue to prosper today and tomorrow.”
Phil Oakley, SVP, Prologis UK, said: “Partnerships and developments like this play an important role in creating long term economic value for West Northamptonshire, helping to attract investment and underpin jobs across the region. At Prologis RFI DIRFT, we’ve built a community with the capacity and skills to support high-performing logistics operations like this one, and we look forward to supporting Arla and XPO as the project moves forward.”
Today’s announcement follows the €107.7m (£90m) investment at Arla Lockerbie to create a UHT and lactose-free milk centre of excellence. This builds on more than €355m of UK investments announced in 2024 across five sites, underpinning Arla’s growth and continued support for UK manufacturing and the future of British dairy.
Speaking about Arla’s support for British dairy, Bas Padberg, managing director, Arla Foods UK, said: “Today’s announcement further signals our commitment to driving change in the UK, and supporting the future of British dairy. The UK food sector has a vital role in public health, and we’re committed to delivering nutritious, affordable dairy for more people – this is another important step forward.”
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