Wrightson decision on strong wool firm close

By PHILIPPA STEVENSON

Wrightson is only days from deciding whether to launch a company to handle the bulk of the country's $700 million-strong wool clip.

The rural service company which already handles around half of New Zealand's principal wool type - used mainly in carpets - yesterday announced an after-tax profit of $10.7 million in the year to June.

The figure was 41 per cent up on last year's $7.5 million, reflecting a strong performance across the group's New Zealand businesses and a significant turnaround in its Australian forage seed business, Wrightson said.

During the year the company formed a joint venture with fine wool promoter Merino NZ but pulled out of another to form a similar company in the strong wools sector championed by the Wool Board.

Last month it reconsidered a strong wools company without board involvement after approaches by major wool producers.

Yesterday, managing director Dr Allan Freeth said discussions with growers had continued and Wrightson was around a week from deciding whether to proceed with a company which could be the sector's last chance to be a major exporting force.

After copping flak for its previous pull-out, Wrightson was less inclined "to put its head above the trenches" and would prefer another strong partner in any new business.

"But we're hopeful. We haven't closed the door," Dr Freeth said.

He doubted farmers would sanction the latest proposal by the Wool Board for a strong wool company to be known as Wool Interiors.

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