We are pleased to announce that the purchase of Christchurch Yarns by NZ Yarn Limited went unconditional last week. NZ Yarn is a company formed to facilitate the purchase by Primary Wool Co-operative, Elders Primary Wool, individual farmers and other investors. Elders Primary Wool will have a major shareholding in the new company.
We believe this is a positive move for the New Zealand wool industry. Not only is this protecting the last remaining independent woollen spinning mill in the southern hemisphere solely producing carpet yarn but a clear demonstration of the wool industry uniting together to maximise the value of our wool.
Primary Wool Co-operative and Elders Primary Wool have worked hard to accomplish this deal and we are excited to see where it will go.
It is anticipated that Elders Primary Wool will supply wool to NZ Yarn Ltd through a contract arrangement with farmers. The wool will be scoured delivered and it is intended that NZ Yarn will offer a higher wool price to farmers to purchase the wool for an extended payment period. This is expected to deliver an increase in returns to growers and a reduction in cost of wool to NZ Yarn by capturing more of the value between the grower and the mill.
Offers of shares will be available until 19 November 2014 with the deal being settled on 21 November 2014. Interested parties can access more information about the business and applications through the Information Memorandum found at www.primarywool.co.nz or contact [email protected]