Production has restarted at the Rowan Glen yoghurt factory near Newton Stewart, which closed last autumn with all staff made redundant, following a management buy-out.
A total of 10 jobs have been created following the buy-out by new company Rowan Glen Limited. The deal follows successful negotiations with the previous owner of the Palnure site, Belfast-based Dale Farm Group.
Alan Baxter, a veteran of the Rowan Glen plant, is managing director of the new company.
The deal includes the purchase of the yoghurt production plant near Newton Stewart, and rights to the Rowan Glen brand, which South of Scotland Enterprise (SOSE) and Rowan Glen Limited described as “one of the top 25 take-home food and drink brands in Scotland”.
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The new company aims to increase its workforce to 25 by end of this year, with a target of employing 45 people by its fifth year.
Last September, Dale Farm Group announced a review of its UK operations, including the proposed closure of the Palnure factory. This review concluded with a decision to close the factory and cease operations at the end of October, with staff made redundant on November 12.
The buy-out has been supported by SOSE through a £285,000 grant. The agency also provided “extensive guidance” during the negotiations.
Mr Baxter 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.
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“Whilst the strategic decision of Dale Farm was understandable, at a high level, I could only see the opportunity at a local level to restart 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.”
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.”
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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.”
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