Bremworth secures $104.2m settlement after Cyclone Gabrielle damage

Insurers have already paid out $62 million to Bremworth, and the balance of $42.2 million was expected to be paid as soon as possible. Photo / Supplied

By RNZ

Bremworth has reached a final multimillion-dollar settlement with its insurers following severe damage and disruption at its Napier plant from Cyclone Gabrielle in February 2023.

The wool carpet manufacturer’s chief executive, Greg Smith, said the agreed settlement was $104.2 million to cover loss of or damage to its property, plant, equipment and consequent disruption to business.

Smith said the significant settlement meant Bremworth could confidently assess what the best approach was to continue to rebuild the business to pre-cyclone capacity.

He said it had already reinstated its Napier dyehouse and related services as well as a yarn-twisting line, and other yarn-finishing equipment was also nearing completion.

Insurers have already paid out $62m to Bremworth, and the balance of $42.2m was expected to be paid as soon as possible.

Smith said the settlement was significant, and would also mean the company could look at different production lines in the future.

Bremworth chair George Adams said the insurance claims had been complex and time-consuming, and he was pleased with the outcome and support received from the insurers throughout the process.

The NZX-listed company will release its latest half-year results nearer the end of this month.