Page last updated at 08:55 GMT, Thursday, 11 June 2009 09:55 UK

Creamery sale 'secures' 170 jobs

Friesian milking cow
Buyers are still being sought for other DFOB factories

Dairy products firm Milk Link has bought an under-threat Denbighshire creamery, claiming it has safeguarded the livelihoods of 300 farmers.

The company bought the Llandyrnog plant for an undisclosed sum, saying up to 170 jobs had also been secured there.

There were fears for the factory after co-operative Dairy Farmers of Britain (DFOB) went into receivership last week, putting 2,000 UK jobs at risk.

The search is still on to find a buyer for DFOB's factory in Bridgend.

After securing the Llandyrnog deal, Neil Kennedy, Milk Link's chief executive, said: "In securing the future of the creamery, we have also ensured that there is a long term requirement for high quality milk produced by dairy farmers in north Wales, Lancashire and the Midlands.

"In the last couple of days our milk procurement team have signed up over 200 farmers and we are confident that we will have secured the milk required for the creamery by the end of this week."

The Llandyrnog creamery uses about 180 million litres of milk per year, and has been producing cheese for nearly a century.

Stephen Oldfield, of receivers PriceWaterhouseCoopers, said: "There was significant interest in the plant as it is modern and has a clear differentiated offering of Welsh traditional cheese.

"We've been grateful for the support of farmers, hauliers and employees in keeping the milk flowing and the cheese maturing while a suitable sale was agreed."

The Welsh Assembly Government has previously welcomed the takeover at Llandyrnog, but said it remains "concerned about the future of the south Wales plant and we will continue to work with the administrators to assist with possible opportunities at the Bridgend plant".

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