Whakatu wool scour to close

Due to a drop in wool volume the wool scour at Whakatu will close on November 9, and the operations incorporated into the Awatoto wool scour. Photo / Duncan Brown

Falling wool volumes has led to Cavalier Wool Holdings deciding to close the Whakatu Wool Scour and consolidate the operation at its Cavalier Woolscourers Ltd wool scouring plant at Awatoto.

The plant was due to close on November 9 this year, but at this point it was uncertain how many job losses there would be bringing the operation to the one site, said Cavalier Woolscourers Ltd chief executive Tony Cunningham.

He said there were about 30 people employed at the Whakatu plant and 50 each at the company's Awatoto and Timaru plants.

"We are hoping to retain as many people as we can," Mr Cunningham said.

Whakatu Wool Scour had in the last year applied for a new 35-year consent to remain at Whakatu, which had been put on hold by the Hawke's Bay Regional Council because a request for further information has been made under s92 of the RMA.

"We sought the consent to add flexibility but ultimately the plant was always going to close," said Mr Cunningham. The operation had been subject to complaints from nearby residents because of the dust, odour and wool fibres it emitted.

Cavalier Woolscourers was partly owned by Cavalier Corporation whose chief executive Paul Alston said this played no part in the decision to move.

"It was definitely discussed regularly, but from a company point of view the scour had been there for a long time and it was important for our customers and for the country that the wool was scoured.

"Due to the current market conditions it was decided to withdraw from the consent process as the volume coming in could be handled from Awatoto."

He said the drop in wool volume this year was partly due to falling wool prices, and people choosing to hold on to the wool.

"We have got wool coming on stream though - we have exporters and traders who want their wool scoured and we want to do that for them."

Mr Cunningham said the Awatoto plant was fully functioning and consented, so the consolidation would be seamless for customers.

"We just need to fill the plant up.

"We're fully compliant, the infrastructure is all geared up for it - it will be more efficient."

The Whakatu building was owned by a previous shareholder in the company and would go on the market to be sold.