Australian food company Beston is planning to acquire milk processor United Dairy Power for an undisclosed amount.
United Dairy's milk processing plants in Murray Bridge and Jervois which were closed after the company went into receivership are expected to resume operations, reports ABC.
Beston plans to upgrade the milk plants to produce clean and green dairy-based food products to Asia.
The plants will initially employ 12 people, with plans to increase the workforce in the future when the production capacity reaches 200 million litres.
Beston spokesman Roger Sexton said: "The sort of markets we're taking our products into are gourmet supermarkets and they are on the increase in China.
"Many more consumers, as they get more income in their pocket, are voting with their feet and looking for products that they know are produced in Australia and can be verified as food safe."
Besides United Dairy, Beston is also looking to invest in biodynamic milk producer BD Farm Paris Creek and seafood processor Ferguson.
