Feed company, ProviCo is buying the Fonterra’s Dennington manufacturing site.
The two companies have signed an agreement to complete the sale by April 22.
Dennington closed down last year, throwing about 70 people out of work.
ProviCo is an Australian-owned animal nutrition company established in 2003.
It is Australia’s largest supplier of calf milk replacers, manufacturing a range of feed and vitamin fortified products for animals including cattle, dairy, sheep, horses and pigs.
Fonterra Australia managing director René Dedoncker said the sale is good news for Dennington and its surrounding community.
“Since we announced the factory’s closure in May, we’ve been working with potential buyers to find a commercially viable and sustainable future for the site, and we’re pleased to be selling the factory to ProviCo with all of its operational capabilities and assets intact.
“The sale creates a new chapter for the factory, which has been an important part of the Dennington community for more than 100 years,” Mr Dedoncker said.
ProviCo Australia managing director, Andrew Paterson, said that the sale will create new jobs for the Dennington community and provide environmental benefits for the agriculture industry.
“Active in the circular economy, our business is focused on salvaging raw materials and turning them into animal nutrition products. This helps the food industry minimise their waste costs and ProviCo’s products improve farm performance and health of animals and soils.
“As well as creating local jobs, we’re committed to sustainability and sustainable initiatives are a big part of our plans.”
Mr Paterson said the Dennington site would be a hub for sustainability programs around renewable energy and sustainable farming products.
ProviCo will use the site to manufacture a range of animal nutrition foods that deliver health and performance benefits for infant and production animals. As part of the sale agreement, ProviCo will also take over the responsibility of the Dennington memorabilia hall and its content.
The Dennington church and its hall are not included in the sale.
Fonterra is in discussions with the Warrnambool Council on the future of the church and its hall and hopes to have an outcome soon.