Wrightson bids to sew up sector

Woolbroker Wrightson has taken control of its "Onewool Establishment Group" for the next stage of its play for the strong wools sector.

In 2000, the $3 million McKinsey Report recommended the establishment of new commercial marketing companies for strong and fine wools.

But the search for a commercial marketing company to handle the big clip of strong wool, used mainly in carpet making, effectively defaulted to the Onewool consortium.

Wrightson managing director Allan Freeth said his company would give the operation a fully commercial structure to link growers to local and international processors.

"Only a commercial company will give security to suppliers and customers, and establish the necessary legal and financial structure to take Onewool forward," he said.

Wrightson - the nation's biggest woolbroker, handling about 38 million kilograms of wool in a season - effectively sank the Wool Board's proposal for a farmer-owned strong wools company by pulling out late in its development, in May last year.

In October the Onewool consortium was announced as an alliance with other industry heavyweights - including Feltex, the East Coast Wool Co-operative and the Federation of Maori Authorities - to procure and market strong wools.

It ran a pilot project to test its concept for growers to produce wool that met the demands of processing mills.

But Mavis Mullins, chairwoman of the Onewool establishment group, said it believed "a commercial structure is preferable to a strategic alliance". Wrightson would take over.

Freeth said his intention was for Onewool to be operating as a commercial company this year.

"Our preferred option is for Wrightson to be a significant, but minority, shareholder."

- NZPA