Cyclone Gabrielle in February caused extensive damage to the Bremworth wool factory in Awatoto, Napier. Photo / Warren Buckland
Cyclone Gabrielle in February caused extensive damage to the Bremworth wool factory in Awatoto, Napier. Photo / Warren Buckland
The future of a 60-year-old woollen yarn plant in Napier badly flooded during Cyclone Gabrielle remains uncertain as 130 staff have now been offered voluntary redundancy.
Bremworth CEO Greg Smith says it is still too early to say whether the long-standing plant in Awatoto will close or be rebuilt, asits insurer is working through how much will be paid for the damages.
The estimated cost to rebuild the site is in the “tens of millions of dollars” according to assessments to date.
However, Smith said “we could still be a few months away from coming to an agreement” with the insurer.
“Until we get that information back from the insurance company we can’t take a position on what the future looks like.”
Bremworth chief executive officer Greg Smith says a decision on the future of the plant could still be months away.
He said even if the insurance money covered estimated costs to rebuild he could not give “a definitive view” about whether the Napier plant would be rebuilt.
Of the company’s roughly 150 staff in Napier, 130 were on Tuesday offered voluntary redundancy.
Smith said the uncertainty is “not easy” on staff and the company wanted to offer them the option.
“While we do not yet have a definitive view around the future of the plant, we are doing all we can to support them and working through the process in good faith.”
Staff have until late next month to decide whether to take voluntary redundancy or stick it out with the company.
Bremworth in Napier employs about 150 people. Photo / Warren Buckland
Some employees have been with the company - formerly known as Cavalier - for decades and staff have also been offered an opportunity to move to the Whanganui plant, where a dozen jobs are going.
About 20 staff at Napier have not been offered voluntary redundancy as they remain vital to the company’s national operation.
Bremworth staff have continued to be paid since the February cyclone and have been helping clean up the site in recent months.
Bremworth makes 100 per cent woollen carpet and rugs, and got a big surge in sales after committing to wollen-only products in 2020, moving away from synthetics.
Before the cyclone, Napier was the company’s biggest facility for producing yarn. It also has plants in Whanganui and Auckland.
It has been sending wool to a contractor in Christchurch, boosted production at Whanganui, and even sent wool overseas to be turned into yarn while the Napier plant has been out of action.
Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.
