130 jobs saved in dairy firm deal

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A Canadian firm has agreed a deal to buy a mozzarella cheese plant in Carmarthenshire, saving 130 jobs.

Saputo Inc said it had paid 12 million Canadian dollars (£5.3m) to buy Newcastle Emlyn-based firm Dansco.

Dansco went into administration last week after losing many of its milk suppliers in a row with farmers over alleged late payments.

David Crawshaw of administrators KMPG said the deal was "a great result" that meant Dansco had "a great future".

Mr Crawshaw said it would secure the jobs of all 130 staff at the factory and provide the region's dairy industry with a market for its milk.

Earlier this month 50 farmers decided to stop supplying Dansco, while a further 50 gave notice that they also intended to quit, after a long-running dispute over alleged late payments.

Mr Crawshaw said administrators had received overwhelming support from customers, suppliers, staff and politicians since stepping in last week.

"It is they who have made the deal possible and I wish them all the very best going forward," he added.

"With Saputo as new owners and the enthusiasm and support of the Dansco management team and employees, I am confident that Dansco has a great future ahead of it."

Confirming it had bought Dansco, Saputo said it had bought the firm in cash on a debt-free basis.

Saputo added that the purchase was "in line with its objective of growing its global presence".