Cwmni Cig Arfon abattoir, Caernarvon, which went into administration in the summer, could resume operations next month.

While the administrator has yet to make a formal announcement, laid-off workers report that interviews are under way with representatives of TH Sutcliffe, the Gwent-based meat company that was always favourite to take over the plant.

Partly funded by farmer investors, the abattoir is the only site in north Wales capable of killing a large number of cattle. It forged links with livestock producer groups on the Lleyn Peninsula and on Anglesey, but closed with debts estimated at 3m, including 1.8m owed to farmers.