Nestle Tongala factory sale: Manning Valley Fresh Dairy claims to be winning bidder
Nestle’s Tongala factory may be sold by as early as this week, with an Australian dairy company claiming to be the winning bidder.
NESTLE’S Tongala dairy factory may be sold by as early as this week.
Sydney dairy company, Manning Valley Fresh Dairy Products, claims it was the “winning bidder”, with chief executive Steve Elvidge telling The Weekly Times contracts were currently being exchanged with Nestle.
The factory, which covers 23,000 square metres on a 78 hectare site and was used by Nestle to produce tinned milk and Maggi and Milo branded products, was placed on the market last November.
At least three dairy companies were bidding for the site, with bids of about $18 million, according to one source.
Two of the other two bidders are believed to be infant formula manufacturer Care A2 and Stephen Blair’s TasAsia Dairy.
But Mr Elvidge said he had been offered sale contracts but these were currently back with Nestle after he sought some changes.
He did not think the alterations were “show stoppers” and hoped the deal would be finalised by the end of this week.
Manning Valley Fresh produced milk powders and infant formulas, cheese, yoghurt, butter and cream products.
Mr Elvidge said the company currently did not have its own manufacturing plant and had been relying on contract manufacturers.
It sourced milk from the Manning Valley near Taree in NSW, plus from Victoria.
Mr Elvidge said he would continue operating the Tongala plant from the time he took ownership and gradually refit it with the equipment needed.
“We don’t get ownership until July,” he said.
“But we want to get access before July to start putting in equipment.
“We will end up putting in a spray dryer in there as well.
Mr Elvidge said the planned expansion meant that his company would need more staff.
“It will be positive for the Tongala area,” he said.
“We want to build this company up into a decent Australian-owned business.”
Mr Elvidge was to have a virtual meeting with Nestle and Tongala factory staff today.
The United Workers Union is holding a community meeting in Tongala on Thursday evening to discuss the future of the Nestle factory.
UWU national dairy co-ordinator Neil Smith said he wanted to make sure the factory was kept running continuously as a dairy plant.
“We don’t care who buys it but we want it to be in the best interests of our members and the community, which includes the farmers,” Mr Smith said.
Nestle head of corporate affairs Margaret Stuart said this morning the sale process “was ongoing” and she could not disclose the bidders.
“We haven’t reached an agreement with any potential buyer yet,” she said.
“We want to work towards a conclusion as soon as possible.”
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