The company makes more than a million pints of milk a day

Dairy Crest also plans to close two other distribution depots. All three closures are expected to lead to up to 400 job losses.

The food producer bought the firm from the Midlands Co-operative Society for �20m two weeks ago.

Midlands Co-op Society said it had been struggling in a "competitive market".

'Significant efficiencies'

Bigger rivals were blamed and it is believed the plant would have needed a major investment of around �25m.

Dairy Crest said Midlands Co-operative Dairies, which processes more than a million pints of milk a day, would be consolidated into its existing dairy operations and it would continue using milk from the 285 Midlands' farm suppliers.

The company, which also makes Country Life butter and Cathedral City cheese, will transfer milk processing to its existing sites, which include a plant in Fenstanton, Cambridgeshire, and one in Stonehouse, Gloucestershire.

The company said it would consult its 330 employees in Birmingham and the plant would close "in due course".

Chief executive Drummond Hall said: "The integration of Midlands Co-op Dairies into our own dairy operations will generate significant efficiencies as well as strengthening our customer base in the Midlands region."