DAIRY produce distribution firm Express Chilled in Blagrove is to close with the loss of about 100 jobs.

The move to close the centre, at the former Anchor site in West Swindon, follows the October merger of owner Express Dairies with the International Arla Foods group to form Arla Food Group UK plc.

Arla spokeswoman Nicola Hedge said today "The announcement was made on Monday to employees.

"They were told that a review of our Swindon operation has been undertaken and that, unfortunately, due to operating costs substantially in excess of estimates, we see no prospect of the operation becoming commercially viable."

Express Chilled, which was established at the site only a little more than a year ago, transports milk, cream, yoghurt and similar products between suppliers and stores. It will close at the end of next month.

A staff member, who asked not to be named, said: "This has come as a real shock, especially at this time of year."

Ms Hedge said Arla would be doing all it could to help Blagrove staff find alternative employment, and that there were some opportunities for relocation to other Arla centres nationwide, although she refused to specify which.

Arla is 51 per cent owned by a Scandinavian farmers' collective, and employs 7,000 people in Britain.