could be significantly improved. In 2001/2002, following the merger of Feltex's and Shaw Australia's carpet businesses, yarn manufacturing equipment was moved from Australia to the Lower Hutt and Dannevirke spinning plants to take advantage of economies of production available in New Zealand.
Some yarn production remained at Braybrook to manufacture certain yarn types not suited to the New Zealand plants at that time. Technological research undertaken during the review has shown that with minor de-bottlenecking of the New Zealand plants and some yarn restructuring, these yarns are now able to be produced in New Zealand.
Accordingly the Board has made the decision to consolidate all woollen yarn manufacturing in New Zealand, and this will lead to the closure of the Braybrook yarn plant at the end of October.
After the closure of the Braybrook yarn plant, Feltex will be able to manufacture all its woollen yarn requirements with its current operating capacity in New Zealand. Additional capacity is available in the New Zealand plants when market demand increases which would require a further increase in employment in New Zealand. The decision will not adversely impact sales, market share or customer service but will reduce costs and improve efficiency.
Woollen Carpet Manufacture The Board has concluded that Feltex should continue to manufacture tufted carpet at the Foxton site, and at its tufting plant at Braybrook which also tufts synthetic carpet. The servicing requirements of Australian customers contributed to the decision to continue to tuft woollen carpet at Braybrook.