Australian Meat Group Pty Ltd (AMG), based at Dandenong in Victoria, confirmed to trade magazine Beef Central on Wednesday it had bought the abattoir from the Manildra Group, based at Nowra in NSW.

Managing Director Gilbert Capral did not disclose the price, but told the magazine AMG would take over the facility 'in coming weeks'.

AMG has an export-licensed beef processing facility in the southern Melbourne suburb of Dandenong, and a plant processing 3000 lambs and sheep a day at Deniliquin, close to the Victorian border.

Mr Capral said some refurbishments would have to take place before looking to source livestock for slaughter, and the abattoir would probably only do beef for the time being.

He said the plant was in good shape despite being mothballed, but It could take 'quite some time' for operations to restart. Cootamundra Abattoir has the capacity to process about 3500 lamb and 200 cattle a day.

Former owners Manildra shut the plant in February 2017. They bought it from original owners GM Scott in 2014, fighting off stiff Chinese competition.

GM Scott had upgraded the plant to obtain export certification.

Ironically the reason for closing the facility was a 2015 surge in lamb and cattle prices, which lowered the profit margin. The final straw was the loss of a Woolworths contract for 1500 lambs a day in December 2016.

The reopening of Deniliquin's Halal-certified abattoir in 2015 created 70 new jobs initially in that town, with hundreds more in subsequent years. The extra employment led to a property boom in Deniliquin and a number of new businesses opening in the main street.

Cootamundra-Gundagai mayor Abb McAlister said the purchase was 'fantastic news' for the town and region, and congratulated AMG which he said was renowned for its high standards.

"They've chosen a great area for livestock, centrally located to markets at Wagga, Yass, Forbes, and Dubbo."