German dairy major Ehrmann has acquired UK-based Trewithen Dairy for an undisclosed fee.

Ehrmann reportedly plans to expand Trewithen’s facilities and open a UK production plant at the site near Lostwithiel, Cornwall, in south-west England.

The new plant is expected to open in 2026, according to Business Cornwall. Ehrmann pudding products will be produced at the facility and distributed throughout the UK, and are expected to account for circa 15% of Ehrmann’s global sales each year.

The German dairy company will also invest £20m ($25m) in Trewithen Dairy’s processing capacity, according to the local publication.

The acquisition will reportedly secure the jobs of more than 260 people currently working at Trewithen Dairy. Ehrmann also said the expansion of the production plant will give dairy farmers in the region a major purchaser for Cornwall’s milk supply, “paying a competitive milk price based upon a guaranteed premium”.

Christian Ehrmann, chairman of Ehrmann, was reported as saying: “Ehrmann has enjoyed success in the UK over the last two years working with major supermarket chains to bring new dairy tastes to consumers. The acquisition is highly significant as it opens up local UK production; enabling us to reduce the carbon footprint and guarantee the freshness of our products.

“Choosing Trewithen’s impressively high-quality Cornish milk production, we’re delighted to bring German product innovation together with the very best of British milk.”

Ehrmann produces pudding cups, yogurts and yogurt drinks in the UK. Its products are available in 75 countries from seven international production sites.

“We’re incredibly proud of our roots in quality pastures and cows that produce some of the best milk in the world,” said Trewithen Dairy owner Francis Clarke.

“Quality and sustainable growth are core values we share deeply with our new colleagues at Ehrmann. That’s why we decided to join forces to breathe fresh air into the Cornish dairy industry as we enter our next phase of expansion.”

In Trewithen Dairy’s financial 2023, the business turned over £95.88m, up from £66.29m in 2022. The dairy posted an operating loss of £1.01m compared to a loss of £3.61m the year before.

Trewithen Dairy made a total loss for the year of £1.51m, an improvement on 2022’s loss of £3.1m.

Just Food has asked Trewithen and Ehrmann for further information on the deal.