AT least 120 jobs are to be created by a company that has bought the former Pinneys of Scotland plant in Dumfries and Galloway.

The Annan factory has been bought by food processing company Bhagat Holdings Limited, aiming to restart production in the autumn.

The plant, which employed around 450 people and was one of the town’s biggest employers, was closed last September by parent company Young’s. New owner Keshav Bhagat said his company is investing £9 million capital funding in the factory and plans to create 120 jobs with the potential for more.

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The Scottish Government, through Scottish Enterprise, has invested £1.7m, through a Regional Selective Assistance grant, to support the company to expand its European interests to Scotland.

News of the factory’s reopening has been welcomed by Rural Economy Secretary Fergus Ewing. “This is great news for the people of Annan, and for the south of Scotland more generally,” he said. “I’m delighted that an international company like Bhagat Holdings has chosen to invest in Scotland ... which will make a real difference to local people.

“When Young’s closed last summer, I said that we would leave no stone unturned and we would keep working to find a solution and an alternative use for this site. That hard work has now paid off and it is Annan and the local community who will benefit.”

Ewing added: “I want to highlight the diligent efforts of Scottish Government staff, working with Dumfries and Galloway Council, Scottish Enterprise, the South of Scotland Economic Partnership, and local partners for the past year, to make this happen.

“Today’s announcement sends a strong message that Scotland remains open for business, and that we are determined to work collaboratively ... to secure investment and jobs for the people of Scotland.”

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Dumfries and Galloway Council leader councillor Elaine Murray also welcomed the news. “I am very pleased with this announcement and hope it signals an upturn in the region’s economy,” she said.

“This is the culmination of a lot of hard work behind the scenes. Some employees may return to the site, but this could also mean new jobs for the area.

“We welcome Bhagat Holdings to our region and wish them well in the future.”

Pinneys’ closure last year sparked a storm of protest with Young’s accused of betraying a loyal workforce.

The factory’s biggest customer was Marks & Spencer, which it supplied with a range of shellfish, smoked salmon and party snacks, as well as ready meals.

Bhagat Holdings Ltd was registered with Companies House in May last year by Bhagat who is the owner of Mumbai-based seafood processor HT Foods, established in 2005.