PLANS to build a £5.2m milk depot in County Durham are progressing satisfactorily, according to Robert Wiseman Dairies.

The London-listed group expects the development, at Chester-le-Street, to significantly increase capacity. It is scheduled to open in September next year.

Robert Wiseman Dairies plans to expand into the London market after posting a 21 per cent rise in half-year profits.

The firm said deals clinched last year to supply supermarket chains such as Sainsbury's and Tesco helped send milk sales to record levels.

The company is to hold talks with major supermarket chains in a bid to break the stranglehold of rivals Dairy Crest and Arla Foods in London and the South East.