More jobs if wool scour firms merge
Timaru is one step closer to securing 25 new jobs, with the Commerce Commission releasing a draft determination authorising the merger of the scouring operations of Cavalier Wool Holdings and New Zealand Wool Services International.
The plan is to combine the two companies' scouring assets, including the Washdyke-based plant, Canterbury Woolscourers, which will become the South Island's sole scouring operation.
Media spokesman for Cavalier Wool Holdings, Tony Cunningham, said although the draft was a positive step, it will not be known until June whether the merger will definitely go ahead.
There will now be a period for interested parties to provide the commission with submissions on its draft findings.
If approved, a Christchurch wool scouring plant will close and Canterbury Woolscourers of Timaru will expand, leading to more jobs.
Cavalier Wool Holdings expect the rationalisation of the wool scouring industry is likely to lead to lower production and administration costs, the freeing up of industrial sites, and lower ongoing capital expenditure requirements in the future.
Cavalier Woolscourers is the largest wool scouring company by volume in the world. It provides contract scouring for carpet wool, and 90 per cent of New Zealand wool exporters.
Each of the processing sites is able to clean more than one million kilograms of greasy wool a week.
- The Timaru Herald