This secures the future of 38 dairy farms and 100 jobs on the peninsula.
The new factory will allow for increased production and provide processing efficiencies that cannot be achieved at the current plant.
The new facility will be funded by two sources: up to £2m from the Scottish government, and funds from First Milk.
Over the past two years, First Milk had progressed plans to sell its existing Campbeltown site to Tesco and, backed by grant funding from the Scottish government, relocate to a new location in the town. However, Tesco has now indicated that it no longer wishes to purchase the site in order to build a larger store in the town. As a result, the creamery will remain at its current location.
Source: First Milk
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