A Chinese company has signed a deal to purchase and expand a seaweed processing factory in Beachport, in South Australia’s south east.

Processing company, Gather Great Ocean Group, has purchased Australian Kelp Products, which has the only commercial seaweed licence in South Australia.

Wattle Range Council mayor, Peter Gandolfi, says the purchase is a much needed boost of confidence for the region, after last week’s announcement that a local potato factory will close.

He says the Chinese company will commit $21 million over three years, and the deal is expected to create about 200 jobs in the region.

“It is very positive to receive news that jobs are being created.

“I mentioned to someone earlier that I was attending a jobs announcement – they then said to me, ‘What jobs are going?’ and I had to explain to them, ‘No, no – this is about jobs that are being created.’

“I hope to see more in the future. We’ve certainly had a bad run when it comes to job losses in recent years.”