This item was published during the term of a previous administration that ended in April 2007
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Stranraer creamery receives £4 million aid
24/03/2003
A £4 million support package for McLelland's cheese-making operations in Stranraer, which will create 44 new jobs and safeguard a further 94 jobs, was announced today.
More than half the total sum - £2.8 million - is to come from Regional Selective Assistance and the remainder - £1.2 million - from SEERAD's Agriculture, Processing & Marketing Grant Scheme
The funds will form part of a new £13 million investment in cold storage and cheese packing facilities for the McLelland Group, owners of McLelland Cheese Packing and McLelland Caledonian Cheese Company.
Previous funding to the creamery over the last two years from the Executive has included £60,000 for organic cheese and butter making and £325,000 for new evaporation equipment.
Agriculture Minister Ross Finnie, at the Scottish Pavilion in the International Food and Drink Exhibition in London, said:
"I am delighted to be able to announce a generous package of grant support from the Scottish Executive towards these new projects.
"This will allow the company to move forward into the growing market for customised packaged cheese products.
"Apart from the jobs which will be created, a co-operative of 700 dairy farmers supply this creamery and securing this vital development on the site is an investment for the dairy sector as a whole."
Enterprise Minister Iain Gray said :
"The project will create 44 new jobs and safeguard 94 in the heart of an area still recovering from the ravages of foot and mouth disease.
"A key focus of RSA, and of Smart Successful Scotland, is on helping Scottish businesses thrive and grow - this is a great example of that.
"I'd encourage other firms to check whether they may be eligible to apply for RSA, by visiting the www.rsascotland.gov.uk website.
"McLelland is an important local employer and I'm pleased the Scottish Executive is able to support its expansions plans, which will have a significant and direct impact on the local economy."
This is the latest expansion and development of the cheese-making operations at Stranraer since McLelland took over management in 1994.
At that time the creamery at Stranraer, previously owned and operated by the Scottish Milk Marketing Board, was failing and McLelland came in to ensure the continued manufacture of Cheddar Cheese and provide an outlet for milk produced in Ayrshire and South West Scotland.
The new McLelland Caledonian Cheese Company Ltd was incorporated in 1995 with A. McLelland & Son Ltd, Murray Vernon Holdings, and the Farmers Creamery Co-operative Ltd (producers co-operative comprising 700 farmers) forming in partnership.
The Company obtains milk for the Stranraer Creamery directly from dairy producers in Wigtownshire, and milk producer groups including First Milk. A range of branded cheddar cheeses are produced, including Seriously Strong (now one of the top selling branded UK cheddars), Galloway and McLelland Mature. Supermarket own label cheddars are also made for all the major multiple retailers.
As well as the shareholding in Caledonian Cheese Company, McLelland & Son have an interest in both Scottish Milk Products Ltd, with cheese creameries at Campbeltown, Arran and Rothesay, and Orkney Cheese Company Ltd. The Campbeltown and Rothesay Creameries have received £784,000 in financial support from the Scottish Executive within the last two years.
It is proposed to build a new 10,000 tonne cold store within the existing site at Stranraer, made up of four fire protected units of 2,500 tonnes each. The £1.2m grant assistance, under SEERAD's Agriculture Processing & Marketing Grant Scheme, has been made towards the cost of building and equipping the new cold store. This should create five new jobs.
A McLelland & Son Ltd is establishing a separate subsidiary company, McLelland Cheese Packing Ltd (MCP), to pre-pack cheese for The Caledonian Cheese Company Ltd. The project is expected to create 39 full-time jobs within MCP and also safeguard 94 jobs within Creamery.
MCP is to erect a new 3,000 sq. m. high-specification building into which state-of-the-art plant and equipment will be installed.