ALL 50 jobs will be retained at the former Goodman Fielder-owned flour mill at West Tamworth following its sale to GrainCorp Limited and Cargill Australia Limited for $200 million last week.
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The Tamworth mill established in Belmore St in 1924 is one of 14 milling and mixing sites trading as Milling Australia, that were sold to GrainCorp Limited and Cargill Australia Limited.
Other Milling Australia sites in NSW are located at Albury, Wagga Wagga, and Sydney suburbs, Summer Hill and Kingsgrove.
Goodman Fielder spokeswoman Lina Melero said the sale was a change in direction for Goodman Fielder, which intended to concentrate on the retail sector and reinvest in its icon brands.
The company sold its Tamworth starch factory to Penford Australasia in 2000, however retains a presence in Tamworth with its major Buttercup Bakery in Lockheed St.
The mill sale was mooted by Goodman Fielder in December last year as part of a review of the business.
The purchase is the first venture into the milling business for grain storage and marketing specialist GrainCorp Limited, but draws on the extensive flour milling expertise of partner Cargill Australia Limited.
GrainCorp Limited managing director Tom Keene said it was a business transformation for GrainCorp, investing further down the supply chain.
He said investing in Milling Australia was a real growth opportunity and he was delighted it was with Cargill Australia Limited, owned by international agribusiness company Cargill Incorporated.
"As a team GrainCorp and Cargill possess the right mix of skills and experience to ensure the growth and viability of the milling business," Mr Keene said.
"We combine specialisations in grain logistics, storage, handling, milling and mixing and the expertise to improve processing systems by introducing world-best practice and new
technology."
Cargill has operated in Australia since 1968 and the two companies already work together through two jointly operated receival centres in NSW.
"By integrating the Milling Australia's business with ours, we can realise cost savings for both sides to share and provide added value to Milling Australia and its customers," Cargill Australia Limited chief executive officer Ralph Selwood said.