Yoghurt making has restarted at the Rowan Glen factory in Dumfries & Galloway after a management buyout was completed.
Ten jobs were saved after the buy-out by new company Rowan Glen Limited that followed successful negotiations with previous owners of the Palnure site, Dale Farm Group. The deal includes that production plant near Newton Stewart and rights to the Rowan Glen brand.
The site was owned by Dale Farm Group, who announced in September that it was proposing to close the Palnure site in a review of its UK operations. The plant was closed in October and staff lost their jobs in November.
Production has now restarted., The new company aims to increase its workforce to 25 by the end of this year and aims to grow it again over coming years.
The buyout was supported by South of Scotland Enterprise (SOSE), through a £285,000 grant as well as support during the negotiations.
Alan Baxter, managing director at Rowan Glen Ltd, said: "Having worked at Rowan Glen over two stints spanning 17 years, I am very passionate about the Rowan Glen people, brand, products and factory.
"Whilst the strategic decision of Dale Farm was understandable, at a high level, I could only see the opportunity at a local level to re-start the Rowan Glen brand and operations to once again supply our fantastic products to our loyal customers.
"Gearing up for a re-start has been very challenging and rewarding and I have a lot of people to thank along the way, none more so than the core team at Rowan Glen.
"The staff at South of Scotland Enterprise have supported this process and have guided me well at the various stages.
"The Dale Farm Team have also supported the process with a phased transition giving the new company the best possible start.
"There is a lot to do and a long way to go, however the team at Rowan Glen over the years have been very committed and loyal and by taking this on there will once again be an opportunity for local employment within the new company of Rowan Glen Limited. We will start small and grow quickly."
Jane Morrison-Ross, chief executive of SOSE, said: "I am delighted the Rowan Glen buy-out has been concluded, following a number of months of extensive discussions.
"It has been a difficult period for all involved at Rowan Glen but SOSE and our partners have been committed to helping find a solution through providing support to the negotiations and now a significant grant to assist with the purchase of the site."
Professor Russel Griggs, chair of SOSE, said: "As the region’s economic and community development agency, we recognised the importance of production and jobs being maintained in this key sector and rural area of Dumfries and Galloway.
"I thank my colleagues at SOSE for their hard work supporting the buy-out as well as Dale Farm Group for their assistance, and look forward to seeing Rowan Glen Limited grow in the coming months and years.”"
Business minister Ivan McKee said: "I am pleased that a future has been secured for both the Palnure site and the Rowan Glen brand through the management buy-out.
"This successful outcome is testament to the hard work of all those involved and has ensured that a number of jobs have been restored. It is also encouraging to hear the new company has ambitions for future growth to create further jobs in the region."
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