Wool scouring merger a win for New Zealand

Wool scouring merger a win for New Zealand

Christchurch-based wool processor and trader New Zealand Wool Services has welcomed the Commerce Commission’s preliminary endorsement of its merger with Cavalier Wool Holding’s wool scouring operations in New Zealand.

Cavalier’s scouring services will be merged with the scouring assets of New Zealand Wool Services International, owned by Australian-based wool processor and merchant Lempriere, pending final Commerce Commission approval.

Lempriere managing director William Lempriere said the purchase was a positive and overdue result for the New Zealand wool industry.

“New Zealand will retain a world-class scouring industry in New Zealand operated by an independent commission processor for the benefit of growers and exporters.

“It means jobs stay here, and Kiwi wool growers and exporters will realise the competitive benefits they’ve been needing from an efficient, combined, wool scouring business.”

Mr Lempriere said the merger was part of the wool industry's consolidation.

“Reducing wool supply has seriously affected the viability for the two scouring entities and we're playing a key role in helping scouring consolidate without it turning into another industry loss to New Zealand.

“The Commerce Commission said the benefits to the industry of this merger were clear. There were too many scouring services for the size of the industry. Now it will be right-sized.”

Lempriere has been active in the New Zealand wool and textile industries since the 1970s. Over that time it has made extensive investment in South Island high country farming, wool trading, exporting and scouring.

“We have more than 150 years’ experience and commitment in global wool and cotton agri-business,” said Mr Lempriere. “We’re committed to growing the wool industry in New Zealand.”

The group of companies is also involved in textile processing and innovation in Levin, the development and commercialisation of medical devices, wholesale and retail apparel operations and the establishment of an industrial design, research and development and innovation hub in Tauranga.

ENDS

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