New Zealand wool industry in doldrums

30 Jun '12

2 min read

The wool industry in New Zealand seems to be having a tough time owing to fall in demand, lack of Government support and continuing closure of wool processing mills, which is raising redundancy.

The recent announcement about imminent closure of a wool processing plant in Auckland has made the textile industry in the country to once again urge the Government to listen to the plight of producers.

Norman Ellison Carpets is set to close down its spinning plant at Onehunga in South Auckland by July end, putting the jobs of 85 workers at risk.

The company intends to shift some workers to other plants, but still around 70 of those employed are likely to be rendered jobless.

Cavalier Corporation, holding firm of Norman Ellison Carpets, attributes the closure to housing downturn in Australasia, which has led to a reduction in demand for carpets.

The announcement of closure of Auckland plant follows a spell of cutbacks at that and other Cavlier plants over the past one year. During last month, Oamaru-based Summit Wool Spinners mill, which engages in production of yarn, mainly for carpets, laid off around 50 workers.

The entire manufacturing sector is struggling during the present recession period and it has led to a cut in demand, with wool processors being the most affected.

According to experts, the Government seems to be apathetic about the plight of the producers and workers, as till now it has not extended any support in terms of investment in the sector or employment strategies.

Fibre2fashion News Desk - India