Negotiations ongoing for Nestlé Tongala factory

Apr 8, 2021

THE future of Nestlé’s Tongala factory is still up in the air, with the company confirming it has received “a number of bids” from interested buyers.

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Nestlé also confirmed exclusive negotiations with one party had ended, despite terms being agreed upon.

While Nestlé declined to disclose the identity of the initial party, it was reported in the Country News on February 10 that NSW company Manning Valley Fresh was negotiating for the purchase of the dairy factory.

Manning Valley Fresh chief executive officer Steve Elvidge could not be reached for comment.

Nestlé's head of corporate affairs Margaret Stuart said discussions were ongoing.

“I can confirm that we had significant interest in the site and a number of bids in response to the sale campaign. We entered into exclusive negotiations with one party and terms were agreed, but the sale did not proceed. We are now resuming discussions with other interested parties,” she said.

“The assets for sale remain unchanged. Importantly, the assets included in the sale will mean the facility will be able to operate as a dairy factory with fresh milk receival and processing in place.

“The dairy section of the factory closed a few weeks ago, while the health science section is continuing to operate and due to close mid-year.”

Nestlé announced in 2019 that it was intending to close the factory within 18 months, but the following year decided to extend its life to early 2021.