Animal feed supplier Ridley Corporation has sold its interest in a production plant in northern NSW as it plans to build a new facility in Tasmania and upgrade another in Queensland.
Chief executive Tim Hart says the Inverell plant, operated by Consolidated Manufacturing Enterprises and jointly owned by Ridley and Indigenous Business Australia, employs about 20 people and has been sold as a going concern.
The sale of Ridley's 25 per cent stake in the plant generated about $3 million, delivering the company a pre-tax profit of about $700,000.
Ridley has not disclosed who the buyer is.
The sale comes after Ridley's decision to build a new feedmill in Tasmania and and upgrade its feedmill at Narangba, north of Brisbane.
Those investments will mean the Inverell facility, which had been used as an overflow production facility, is no longer needed, Mr Hart said.
"We are delighted that the sale process has delivered such a positive outcome not only for the two CME shareholders but also for the local community, for whom the facility is such a significant employer."
Ridley shares were up 0.75 cents at $1.2925 at 1225 AEDT.
