The co-op has signed a sale and purchase agreement with ProviCo Australia, with the sale to be completed by April 22.
ProviCo is an Australian-owned company established in 2003 and is Australia’s largest supplier of calf milk replacers.
The company makes a range of feed and vitamin-fortified products for animals including cattle, dairy, sheep, horses and pigs.
Fonterra came under fire when it announced the closure of the factory and 100 job losses last year, with calls for the plant to be sold rather than mothballed.
Fonterra Australia managing director René Dedoncker said the sale was 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,” he said.
“The sale creates a new chapter for the factory, which has been an important part of the Dennington community for more than 100 year.”
Managing director of ProviCo Australia, Andrew Paterson, said the sale would create new jobs for the Dennington community and provide environmental benefits for the agriculture industry.
“We’ll be employing local people and will work with local training institutions to provide on-the-job skills training to create further employment opportunities for the community,” Paterson said.
“As well as creating local jobs, we’re committed to sustainability and sustainable initiatives are a big part of our plans.
“The Dennington site will be a hub for our sustainability programmes around renewable energy and sustainable farming products.”