Woolen yarn & carpet maker Feltex de-bottlenecks ops

10 Oct '05

4 min read

Residential and commercial carpets manufacturer Feltex Carpets has completed the next stage of its operational review which focussed on its woollen carpet operations. A number of decisions have been made which together will significantly change the medium term outlook for the Company's woollen carpet operations and generate substantial ongoing cost savings.

Background to Woollen Operations
The Feltex of today is the result of mergers and acquisitions of many different companies over 50 years. This has resulted in Feltex having multiple woollen yarn and carpet manufacturing sites.

Currently wool is scoured at the Kakariki plant (close to Marton). Scoured wool is then supplied to spinning plants in Lower Hutt, Feilding, Dannevirke, and Christchurch in New Zealand, and Braybrook in Melbourne.

Christchurch has historically spun yarn for woven carpet manufacture which occurs on site. The other plants spin yarn for tufted carpet manufacturing which occurs at Foxton and at Braybrook.

Competitiveness in the Woollen Carpet Market
The operational review has concluded that Feltex remains a competitive manufacturer of woollen carpets. In particular, the proximity to New Zealand grown carpet wools provides an international comparative advantage in producing woollen carpet in New Zealand. The review endorses the position that woollen product should remain a core part of Feltex's operations.

Woollen Yarn Operations
The operational review identified several areas where Feltex's woollen carpet operations

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