Donegal Creameries has purchased another milk processing plant near its production headquarters in Killygordon, Co Donegal.

Workers at the family-run Milburn Dairies in Castlefin were informed by management last week of the sale to the local food group.

Donegal is believed to have paid a six figure sum for the plant and milk run. Around a dozen local people are employed at the plant at Milburn near the centre of the town on the Lifford Road.

Sources say that Donegal will keep the Milburn brand when it takes over the plant. Milburn Dairies was set up by the Porter family from Castlefin more than 30 years ago and has established an extensive milk run throughout the county.

Industry sources say that Donegal paid in the region of €1,000,000 for the company despite local reports of a multi-million euro sale.

Accounts lodged by Milburn at the Company Registers Office in Dublin show the company held total assets of €582,437 at August 31st, 2004. Directors of Milburn are David Porter, Henrietta Porter and Howard Porter.

Attempts to contact management at either company during the week proved unsuccessful.