New Feltex venture: in Australia

Press, 9 October 1982, Page 22

New Feltex venture: in Australia

PA Auckland Feltex New Zealand. Ltd., disclosed yesterday that it is negotiating a new joint venture in Australia in a move preceding any agreement on carpets under closer economic relations with Australia.

The company announced that negotiations between Feltex Furnishings and the Melbourne-based Pacific Carpets International Pty. Ltd. were nearing completion on a new Australian company to be owned 60 per cent by Feltex and 40 per cent by PCI.

It is proposed that the new company, yet to be named, will combine the technological. production, and distribution strengths of the two companies in Australia.

The general manager of Feltex Furnishings. Mr J. H. Burridge. said the move was a "natural development" for Feltex to extend into manu-

facturing carpet in that country.

"Increasingly Feltex regards Australia and New Zealand as a single market." he said.

Mr Burridge said Feltex would be joining Australia's "largest and most progressive carpet company." Both companies would benefit from combining activities in Australia, and there would be benefits in export markets.

The proposal will be subject to government and other consents, but Feltex hopes to have details completed and the company formed in a few weeks.

The new company will be based in Australia and will have no involvement in existing Feltex interests in that country. The city has yet to be decided.

Feltex said that its other Australian operations, such as timber and rope, would not be involved. Nor would the new company extend to Feltex woollen distribution company for carpet in Australia.

Pacific Carpets International manufactures only

synthetic-tutted carpels, so Feltex regards the venture as complementary to its woollen carpets. The proposed capital and assets of the new company have not been disclosed.

But the Feltex group manager (carpets). Mr L. J. McGillivray, said that the move would put Feltex into the Australian market in a "substantial way" and give it a substantial share of synthetic carpet business. The managing director of PCI. Mr Peter Hepples. said that the new company would have a strong financial base and its manufacturing and distribution strengths would allow PCI to be much more effective in countering imports and building a worthwhile level of exports. Mr McGillivray disclosed that Feltex had made the initial approach to PCI and said it was “the major move in developing Australian interests we have been looking for."

He said Feltex had investigated a lot of moves in Australia in the past few years to put it in a better position "to take on the rest of the world."