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Cavalier plans to cut capacity in wool scouring industry

19
Dec '08
Cavalier Corporation (Cavalier) announces that it has agreed with the David Ferrier interests (Ferrier) to form a joint venture to bring about the much-needed rationalisation of the wool scouring industry in NZ and to address the mismatch between scouring capacity and the substantial reduction in sheep numbers, and wool available for scouring, as a result of the conversions to dairy and dairy support and the droughts of recent years.

Ferrier is a 7.5% shareholder in Cavalier's commission wool scouring operations based in Hawkes Bay and Timaru.

The proposal, which involves the initial acquisition of the Godfrey Hirst wool scouring business in NZ by Ferrier, is still conditional upon, amongst other things, Commerce Commission approval.

Cavalier's involvement in the proposal is also conditional upon shareholder approval, and the Board of Directors will communicate separately with shareholders in due course.


Cavalier Corporation


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