The Assembly Member for Carmarthen East and Dinefwr, Rhodri Glyn Thomas, says he has been contacted by South Caernarfon Creameries which have expressed an interest in purchasing milk from local farmers.
Mr Thomas said the move was "encouraging" and that he had contacted local farming unions to bring the development to their attention.
I am today meeting with the Welsh Government’s Minister for Business to discuss the options available to secure the future of the factory and its employees.
Ultimately I want to ensure the highest possible retention of employment within the Newcastle Emlyn area and will continue to do all I can to stop as many job losses as possible.
More top news
A row has erupted in the Senedd after Cymdeithas yr Iaith refused to answer questions by UKIP in a committee hearing.
The Senedd's told how Chelsea Manning is recalled at her Welsh school. Simon Thomas AM also described her "severe" prison conditions.
A single mum was 'unlawfully' jailed for 40 days for not paying Council Tax, a High Court Judge has ruled.