Historic depot set to close
New intermediate wool depot is to be set up ‘in the nearby area’
AN historic wool depot in Gwynedd is to close as part of efforts to cut costs in Britain’s Covid-blighted wool sector.
From mid-February the Porthmadog depot will be replaced by a new Intermediate Depot “in the nearby area” where producers can drop off their wool.
Marketing body British Wool said the move was necessary in the face of “severely depressed” prices.
Grading depots in Irvine, Stamford and Liskeard are also closing in a move designed to save £1.5m-a-year.
Based on British Wool’s current level of wool intake, this equates to a saving of 6p-7p per kg.
The Porthmadog operation dates back to 1956 when wool merchants TJ Williams created a depot in the old Union buildings, Madog Street. British Wool bought the site after its former owners went into liquidation in 2010.
As one of 12 grading depots operated by British Wool, it handles around 13.62% of the total annual Welsh wool clip.
Some 11m kg of UK wool was left on the shelf when the Covid-19 pandemic closed international markets.
Andrew Hogley, acting CEO at British Wool, said this was cleared in the summer but at rock-bottom prices.
Global market still faced an oversupply of cross-bred wool, prompting the need for a “major restructuring programme”, he said.
“Although we have seen some more positive signs in recent auctions on some wool types, carpet wools remain under a great deal of pressure,” said Mr Hogley.
“The contract carpet market which serves hotels, offices, cinemas, restaurants, airports, cruise ships and the like, remains extremely depressed due to the closure of the hospitality trade.”
Despite the loss of four depots, British Wool insisted service levels to producers would not be affected.
Producers will be contacted ahead of next season to let them know where the new drop-off points will be. “Where we close a grading depot we intend to replace this with a new intermediate depot in the nearby area,” said Mr Hogley. “This will ensure producers still have a local drop point for their wool with no onward haulage charges. We will also continue to take all types of wool from any producer.
“The sites we are closing are still open for producers to deliver this season’s wool and will remain so until the middle of February.”
British Wool’s last major restructuring in Wales was in 2015, when the
Denbigh depot was converted from a grading facility to a collection centre.
At the time eight full-time staff worked at the Porthmadog depot, which also employed seasonal staff each summer.
Its closure leaves Wales with just two grading centres, in Newtown and Brecon, despite having the UK’s greatest concentration of wool growers, supplying 27% of the annual British clip.
Gwynedd Cllr Nia Jeffreys , who represents Porthmadog East, said her “heart goes out” to depot staff and she urged British Wool to offer alternative employment.
She added: “It is vital the company makes arrangements for the depot building. The very last thing we need in Porthmadog is a large empty building.”