New wool entity set sights on growth
Wools of NZ LP seeks extra value for its grower suppliers
Primary Wool Co-operative (PWC) and Wools of New Zealand Ltd (WNZ) have completed the merger of operations between PWC-owned CP Wool (CPW) and WNZ with the merged entity now commencing trading.
Northland sheep and beef farmer James Parsons has been appointed chair of the new organisation called Wools of New Zealand LP. Richard Young, Craig Hickson, Hamish de Lautour, Rebecca Smith, William Oliver and Ian Marshall have also been appointed directors. John McWhirter is the chief executive of the new entity.
WNZ and PWC voting shareholders overwhelmingly supported the merger of WNZ and CPW operations in votes last month.
The new entity transacts over $80 million, has more than 80 staff, nine wool stores, a carpet manufacturing partner, a New Zealand carpet distribution warehouse, over 120 carpet retail store partners in NZ, a UK office, many offshore customers, a strong well-recognised Wools of NZ Fernmark brand and nearly 4000 grower suppliers.
“The completion of this transaction was a distant concept 14 months ago and naturally we are delighted to have reached this milestone,” said Mr Parsons. “The extra scale will help fast track our strategy to capture more value for our grower shareholders.
“The strategy is not complex. We started on a journey in July this year, selling branded woollen products at significantly better margins than transacting raw wool as an ingredient at unsustainable prices. Our focus is now to ramp up the branded consumer product sales, drive operational excellence into the new business and really connect with our growers and customers.
“We now have one organisation with the necessary strength and scale to make a real difference to New Zealand’s struggling wool industry. Wools of New Zealand LP coordinates an integrated value chain from the grower to the consumer. We can better meet consumer needs with carpet that doesn’t cost the earth.”
The new entity transacts approximately one third of NZ’s wool clip as well as exporting WNZbranded wool and domestic and export branded carpet sales.