Carpet firm in legal appeal

The country's largest carpet maker, Australian-owned Godfrey Hirst, is appealing the recent Commerce Commission decision giving Cavalier Wool Holdings approval to create a monopoly in the wool scouring industry by acquiring NZ Wool Services International's (WSI) assets and liabilities.
The acquisition of WSI would make Godfrey Hirst reliant on Cavalier, its carpet-making rival, to supply wool to the industry.
If the take over was successful Cavalier has indicated it would re-locate WSI's scouring plants from Kaputone to Timaru and from Whakatu to Cavalier's nearby plant at Awatoto, between Napier and Hastings. Cavalier would also mothball scour lines at its own Clive and Timaru plants, and take over WSI's 50 per cent stake in the Lanolin Trading Company.
WSI does not welcome the take over, which was only possible through the receivership of South Canterbury Finance which owned WSI's majority shareholders Plum Duff and Woolpak.
WSI chairman Derek Kirke said his company was not party to the High Court appeal.
The Commerce Commission regulates competition issues in New Zealand and approved the monopoly, fearing competition to the New Zealand scouring industry from China.
Cavalier had planned to expand its Hawke's Bay operation and had offered jobs to WSI workers, should the takeover eventuate.