According to reports, food manufacturer 2 Sisters has agreed the sale of its Avana Bakeries site in Rogerstone, west of Newport, to Food Utopia.
The site was set to close this summer following the loss of a multi-million pound cake contract with Marks and Spencer.
However, the sale, which has been confirmed by 2 Sisters, could potentially save over 500 jobs at the site.
Rogerstone councillor Chris Evans today tweeted: “Appears to be good news breaking about Avana Bakeries, workers tell me it’s been taken over, and, they’re positive about the future.”
In a statement, 2 Sisters said: “Avana Bakeries is pleased to announce the sale of its food processing site in Newport. It is proposed to operate the business under a new company, Food Utopia, which will aim to secure continuing operations. There will be a transition period as existing customer contracts transfer to the new company.”
The sale with Food Utopia, which has been set up by former 2 Sisters executives, is set to take place in August.