Nearly 400 workers at Müller’s Chadwell Heath dairy plant are to lose their jobs.

Operations at the Selinas Lane site will wind down over the next 15 months, the company announced today.

The “unavoidable” decision to axe 389 jobs was made following a 45 day consultation.

Managing director of Müller Milk & Ingredients, Andrew McInnes, said the site was “no longer economically viable”.

“In an environment where there is simply too much fresh milk processing capacity, we simply cannot justify the level of investment required for the complete overhaul and modernisation required at the site,” he said.

“Wherever possible, we will offer colleagues opportunities to relocate within our network, and we will do everything we possibly can to support those who do not wish to relocate or for whom there are no roles.”

Müller has announced a £15m investment in its dairy at Bellshill to create a Scottish fresh milk and ingredients centre of excellence and reversed a decision taken by Dairy Crest, prior to the sale of its dairies to Müller, to close a dairy at Hanworth in South West London, which secured a further 170 jobs.