Hawke's Bay wool scouring operations will be centred at one site following the merger of the industry's main players in the threatened industry.
Cavalier Wool Holding and New Zealand Wool Services International (NZWSI) have announced an agreement to merge their scouring assets, with the prediction of more jobs in the long run.
The move is subject to regulatory approvals and Commerce Commission authorisation.
About half of the companies' combined staff of 160 is in Hawke's Bay, including seasonal workers.
Cavalier Woolscourers CEO Nigel Hales said he was happy to have a good-news story for a change.
His company was operating a sinking-lid employee policy as the industry shrank due to low volumes from the nation's dwindling flock and overseas competition.
"We are very keen to retain as many staff as we possibly can - it is very difficult to get qualified people," he said. "We would hope to retain as many jobs as possible."
Ross George, director of Cavalier Wool Holdings, said it was an opportunity to "right-size" the industry ensuring "an efficient and world-class scouring industry is retained in New Zealand".
Cavalier is New Zealand's largest scouring operator based in Clive, Napier and Timaru.
Australia-owned NZWSI operates wool scours in Napier and Christchurch and is New Zealand's largest exporter of wool. Its wool trading operation will become a stand-alone exporter and a commission customer of Cavalier.
Mr George said processing would be shifted to one site on each island, ensuring scouring stayed in New Zealand through lower costs and improved logistics.
"It will be moving scouring lines from one site to another, rather than closing plants. The same capacity, but in one location."
All North Island wool already moves through Napier to be sold. Unlike Australia's clip, which is exported greasy, much of it is scoured in New Zealand which Mr George said provided positive differentiation.
The merger could grow the viability of wool and surrounding industries, potentially increasing the nation's flock, he said.
"There is a lot of commonality for selling and processing New Zealand wool.
"We have talked about this on a number of occasions over the last five years so it is great to get agreement and be on the road."
Job hopes good after merger of wool firms
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