New organisation Wools of New Zealand LP commences trading

Wools of New Zealand LP chair James Parsons (left) and chief executive John McWhirter. Photos / Supplied

Primary Wool Co-operative (PWC) and Wools of New Zealand Ltd (WNZ) have completed the merger of operations between PWC-owned CP Wool (CPW) and WNZ with the merged entity now commencing trading.

Northland sheep and beef farmer James Parsons has been appointed chairman of the new organisation called Wools of New Zealand LP.

Richard Young, Craig Hickson, Hamish de Lautour, Rebecca Smith, William Oliver and Ian Marshall have also been appointed directors.

John McWhirter is the chief executive of the new entity.

WNZ and PWC voting shareholders overwhelmingly supported the merger of WNZ and CPW operations in votes last month.

The new entity transacts more than $80 million, has more than 80 staff, nine wool stores, a carpet manufacturing partner, a New Zealand carpet distribution warehouse, more than 120 carpet retail store partners in New Zealand, a United Kingdom office, and nearly 4000 grower suppliers.

"The completion of this transaction was a distant concept 14 months ago and naturally we are delighted to have reached this milestone.

"The extra scale will help fast track our strategy to capture more value for our grower shareholders.

"The strategy is not complex. We started on a journey in July this year, selling branded woollen products at significantly better margins than transacting raw wool as an ingredient at unsustainable prices.

"Our focus is now to ramp up the branded consumer product sales, drive operational excellence into the new business and really connect with our growers and customers," Mr Parsons said.

The new entity transacts about a third of New Zealand's wool clip as well as exporting WNZ-branded wool and domestic and export branded carpet sales.