The Orange City Council has held discussions with a Chinese consortium over a proposed powdered milk plant.

Mayor, John Davis, says he can't reveal the name of the consortium or any dollar figure.

Cr Davis said he can't reveal many details but council representatives have held initial discussions with the consortium and hope to meet again within two months.

He points out the consortium is considering other locations.

Cr Davis it would be good news for the dairy industry with milk sourced from a three hour radius.

The Mayor said the council has received a number of approaches by overseas investors since Electrolux announced it would close fridge manufacturing plant which will open up a pool of workers and possible government incentives.

"And I know a number of councillors and the staff have had probably at least a dozen proposals since the Electrolux announcement and we've got to check them out and make sure they're genuine," the Mayor said.

"I've got to say the people in regards the powdered milk proposal are very, very genuine."

Cr Davis said the powdered milk factory would be great news for Central West dairy farmers.

"It would be very substantial as a factory," he said.

"In basic terms you've got to have supply quite an enormous supply of milk and evidently that can be up to three hours from the point of the factory."

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