Co-operative launched to unite strong wool industry

20 Oct '10

5 min read

Proceeds of the capital raising will be used to purchase selected assets from WPI, including leading international brands, the Wools of New Zealand business, the National Wool Auction Centre, WPI's procurement network and certain logistics assets.

New Zealand Wool Handlers, the operator of logistics and warehousing services, is not included in the purchase, but Wool Partners Co-operative has the opportunity to acquire the business for 18 months. Wool Partners Co-operative will also sign an exclusive contract with New Zealand Wool Handlers to provide logistics and warehousing services.

Wool Partners Co-operative has an inaugural board of directors comprising Jeff Grant (Chairman), Theresa Gattung, Sir Brian Lochore, John Perriam, Mark Shadbolt and Keith Sutton.

“The directors have an extensive range of wool industry, commercial and marketing expertise that will assist management in achieving a sound future for the industry,”
Mr Grant says.

Growers will receive in the mail a copy of the prospectus and investment statement detailing the offer.

The directors and management of Wool Partners Co-operative will embark on an extensive programme of farmer meetings, beginning on 26 October 2010, to provide all growers with the opportunity to discuss the vision for Wool Partners Co-operative and the capital raising programme. The meetings will end in the last week of November, a few days before the 30 November 2010 closing date for subscriptions.

“The offer will proceed only if there is majority support from growers who collectively produce more than 50 per cent of the strong wool clip,” Mr Grant says.

“Consolidation is essential if we want to change the way strong wool is marketed and sold. It is the goal of Wool Partners Co-operative to market 60 per cent or more of the strong wool clip and drive the partnerships that will bring about change. We recognise that Wool Partners Co-operative does not need to own the entire value chain, but it does need to build strong relationships with partners and customers who share a common vision and goal.”

“The future of the strong wool industry is now in the hands of the growers. By committing their wool to Wool Partners Co-operative and making a modest investment in the company, growers will take control of the industry and drive a marketing organisation that is innovative and passionate about strong wool.”

Wool Partners Co-operative Limited