Dunedin authorities, unions and business groups remain confident the Hillside Engineering workshops will be sold as a going concern and have offered assistance to KiwiRail in the process.
Members of the Hillside Group - an informal collective of Dunedin people with an interest in the facility- gathered to discuss the sale's progress last week.
Group chairman and Otago Chamber of Commerce chief executive John Christie said KiwiRail executives provided an update on the sale.
The state-owned enterprise had received non-binding indicative offers and was entering a due diligence stage to determine the validity of potential buyers, after which a sale decision was expected to be made in late August.
Details of the interested parties remained confidential.
Mr Christie said his group was encouraged by KiwiRail's move to undertake due diligence on tenderers, as it indicated there was serious interest in the property.
He said all interested parties, including KiwiRail, wanted to see Hillside's operation maintained under a new owner.
"We are still very hopeful of a good outcome for the city of Dunedin in the wider sense."
Hillside employs about 120 people and is part of KiwiRail's engineering and manufacturing division.
It primarily serves the rail industry, but also provides general fabrication and manufacturing for mining, smelter and forestry companies.
