Jobs will be created after a management buy-out was sealed for the Rowan Glen yoghurt-making factory near Newton Stewart.

A deal with previous owner Dale Farm Group involves the purchase of the yoghurt production plant at Palnure and rights to the Rowan Glen brand – one of the top 25 take-home food and drink brands in Scotland.

Production is now under way, with the new company aiming to increase its workforce from an initial 10 to 25 by end of this year, with the target of employing 45 people by its fifth year.

Dale Farm Group announced a review of the plant’s future last September alongside its other UK operations. The panlure factory closed at the end of October.

The buy-out has been supported by South of Scotland Enterprise (SOSE), through a £285,000 grant as well as extensive guidance provided during the negotiations.

Rowan Glen managing director Alan 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. 

“Whilst the strategic decision of Dale Farm was understandable, at a high level, I could only see the opportunity at a local level to re-start the Rowan Glen brand and operations.

“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.

“The staff at South of Scotland Enterprise have supported this process and have guided me well at the various stages.

“The Dale Farm Team have also supported the process with a phased transition giving the new company the best possible start.

“There is a lot to do and a long way to go, however the team at Rowan Glen over the years have been very committed and loyal and by taking this on there will once again be an opportunity for local employment within the new company of Rowan Glen Limited. We will start small and grow quickly.”

Jane Morrison-Ross, chief executive of SOSE, said: “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.”