The Upper Hunter is set to become home to a major alcoholic spirits producer.
Sydney Rum Distillery will repurpose the old Oak Milk Factory in Muswellbrook to produce a range of their premium products for the growing international market.
CEO Steve MaGarry said the project will initially create 24 jobs in the town with additional hospitality roles once a visitor centre and function room is set up.
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The first bottles of rum should start rolling off the production line in July.