Spinner protects market

Press, 19 May 1981, Page 31

Spinner protects market

PA - Wellington A small independent yarn producer, New. Zealand Wool Spinners, Ltd, has. substantially increased its stake in a Melbourne carpet making company — at a time when a shadow is hanging over wool content in Australia floor coverings. The Dannevirke company, which has had mixed fortunes since it was set up under the 1972-75 Labour Government’s regionalisation policy, is the only. New Zealand company with;a major/ mahufgcturjng. unit/ in. Aus-/ It increased its-sharehold- ■ ing in Bond Worth Australia Pty, Ltd., from 25 to 80 per cent. The Melbourne company is believed to be one of the fastest-expanding com-

panies of its kind in Australia until it ran into financial strife.

Bond Worth subsequently restructured and disposed of its spinning units. The chairman of New Zealand Wool Spinners (Mr W. A. Dew) said that by gaining control of Bond Worth his company, would increase the flow of carpets to Australia. He said that the bounty paid by the Australian Government to synthetic yarn-. spinners . would encourage; tufters to ’produce! synthetics.- to ’the detriment of wool. ’ ■

It would make Australian tufters more competitive than their rivals. Wool-rich carpets would decrease on the Australian markets unless the quota from this country was increased, or lifted.

Mr Dew said control of Bond Worth meant his company would develop woolrich carpets to supply on the Australian market.

Under the plan Dannevirke and Melbourne would continue as the production units for the company. During the last five years the company had exported more than $lO million worth of yarn to Bond Worth. Mr Dew said that the company owned the most modern semi-worsted carpet spinning plant in New Zea? land, and little was owing on plant and buildings. Discussing the company’s operations, Mr, Dew said a failure to' successfully market . carpet yarns, had forced the directors to consider reducing operations. Reductions were announced recently. However, a number of people had been found alternative jobs. Mr Dew said the company had increased export earnings from $3,500,000 to $6,200,000 to March 31 this year. A major marketing breakthrough had been made to the East, and the first consignment of yarn was exported this month.