Fonterra's announcement that it will process milk at its Takaka factory this summer has been welcomed as "a fantastic first step" by the town's residents.
The factory was badly damaged by a huge fire last week and Fonterra said yesterday it would process milk into milk powder this season once
it erected a new building on the site.
Dairy farmer Kathy Reilly said processing milk this summer would make it "easier and more logical" to increase processing capacity later, "although nothing is guaranteed".
"It's a fantastic first step to the factory being rebuilt."
One factory worker said workers were "very pleased" to hear the news from Fonterra's manufacturing general manager Brent Taylor, who met with workers in Takaka.
However, workers still do not know how many will keep their jobs.
Fonterra will make its final decision on the factory's future on July 25.
Mrs Reilly said she and husband Tony, a former chairman of Tasman Milk Products, would be lobbying very hard, along with others, to have the factory reopened.
"The workforce here in Takaka has a skills base that is enviable."
- nzpa
