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 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 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,” Ms Stuart said.
“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.
“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.”
In August 2019, Nestlé announced it would cease operating in Tongala at the 78 ha site within 18 months, which led to 106 jobs being made redundant.
At the time, Nestlé said cheaper dairy imports were behind the decision, with tinned milk production set to move overseas.
But facing unprecedented demand for its products due to the outbreak of COVID-19 in 2020, the company chose to delay the closure to guarantee its ability to meet demand.
The site has largely produced tinned milk products, but in recent years Nestlé has added new product ranges.
This has included producing Maggi culinary products since 2010, Nestlé Health Science medical nutrition products from 2012 and Milo Ready to Drink since 2017.
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