A £20M investment in its Lockerbie creamery will see Milk Link recruit more dairy farmer suppliers from the North of England.

The plant will become the largest dairy processing site in Scotland and one of the largest and most advanced creameries in the UK.

The latest processing technology will see cheese production increase by 12,000 tonnes to more than 37,000 tonnes a year, making Lockerbie one of the leading Cheddar production facilities.

Neil Kennedy, chief executive, said the investment was not only the largest ever undertaken by Milk Link, but one of the largest in UK cheese manufacturing for more than 20 years.

He said: “It will transform the creamery and reinforce Milk Link’s leadership position in the production of high quality British cheeses. At the same time, we believe it provides a timely boost to the dairy sector in South-West Scotland and the North of England as we increase the volume of milk from the region going into value added dairy processing.”

Mr Kennedy said work at the creamery would start later this year and be completed by autumn next year.

He said: “Our decision to invest at Lockerbie reflects the growing demand for our quality British cheeses, the skill and dedication of our staff at Lockerbie and the potential of the South-West Scotland and North of England milk field to supply us with increased volumes.”

Milk Link, which is owned by more than 1,600 dairy farmers, has also carried out major investments with a next generation whey processing plant at Taw Valley and a new soft cheese creamery at Cornish Country Larder’s Trevarrian site. Both will be fully operational this autumn.

Richard Lochead, rural affairs secretary, described the announcement as “superb news”. He said: “As well as securing vital jobs, the creamery expansion will provide a boost for farmers as the amount of milk required increases to meet demand.”

Mansel Raymond, NFU dairy board chairman, said: “The news of an investment on this scale in modern dairy processing is truly excellent.