MOBERLY, Mo. -

MFA Oil Company announced Tuesday it will purchase the site of the failed Mamtek plant in Moberly.

MFA says it has a contract to purchase the 33-acre site, where Mamtek was supposed to build a new sweetener plant.

“This property provides MFA Oil with some strategic opportunities,” said MFA chief operating officer in a statement. “The site has convenient access to 63 Highway and will allow us to upgrade some of our current support operations and explore future business opportunities. We look forward to partnering with the city of Moberly to turn this property into economic engine that it was originally designed to be.”

The company says it will take a "significant investment" to finish development on the site.

"It certainly is a good sign," said Moberly City ManagerAndrew Morris. "It will help us out financially certainly on the city's end though our finances are still in pretty good shape."

A bankruptcy court has approved the sale of the property, but a closing date has not been set.

The purchase price was not released.