LWR buys Tekau assets

Press, 15 October 1982, Page 10

LWR buys Tekau assets

Lane Walker Industries. Ltd. has acquired the assets of Tekau Knitwear, Ltd. Ashburton. and in a rationalisation move L.W.R.’s section specialising in the knitting of sweaters and cardigans will be transferred to Tekau's Ashburton plant. Tekau, which only makes sweaters and cardigans at present, is a subsidiary of Waitaki N.Z. Refrigerating, Ltd. It was taken over by the former Waitaki Industries, Ltd, in 1969 — before the merger of Waitaki and N.Z. Refrigerating Company, Ltd. Tekau has been running at

a loss in the past few years, and a drastic restructuring programme resulted in the closing of the company’s Timaru plant earlier this year. However, Tekau has recently been building up a useful export business, and because of L.W.R.’s dramatic success in the United States and Canada, the emphasis will be very much on the export trade. The combined operation is budgeting for export sales next year of about SI.SM, rising to between S3M and S4M during the next few

years. It should -be a good move for Ashburton as it could double the size of the Tekau operation at a time when continuing losses must have been posing a serious problem for Waitaki N.Z.R. It is understood there are no redundancy problems. The acquisition date is November 1 in a cash deal; terms have not been disclosed. Mr J. McGuire, the former South Island manager for Haywrights, will be managing the new combined operation.