Supply changes for Whanganui plant as Bremworth changes export direction to overseas markets

Bremworth chief executive Greg Smith is looking to use overseas suppliers to get dyed fibre for the Whanganui plant.

Lowered production in Bremworth’s Whanganui plant due to Cyclone Gabrielle damage means chief executive Greg Smith is looking to overseas markets to repair the company’s losses.

Bremworth’s Napier plant supplied dyed fibre to the Whanganui plant to be made into yarn, but Smith said the Napier plant had been out of order for seven weeks due to cyclone damage.

“It’s devastating what’s gone on in Napier, we’ve been actively cleaning up the silt, sludge, mud and biochemical waste with our teams there.”

Napier was responsible for all woollen spun yarn, which accounted for 75 per cent of Bremworth sales.

Smith said Bremworth had hired another dye house in the South Island which would begin to provide the Whanganui plant with dyed fibre.

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“By the end of this month, we should be back to our normal production levels, which means back to business as usual for Whanganui.”

The 86 people employed by the Whanganui plant have still been paid throughout the lowered production level.

Bremworth Whanganui employees have been working on plant maintenance and community engagement while waiting for the supply chain to restart.

The ongoing impact of the Napier plant damage had forced Bremworth to look to overseas suppliers for dyed fibre, Smith said.

“Having the ability to produce yarn overseas that meets our colour and quality specifications could present an opportunity for us to compete in other markets.”

This could enable a larger production of yarn which would allow Bremworth to go for contracts in Australia and further abroad, he said.

“We can order vast quantities of yarn made with New Zealand wool from overseas, which means potentially we can start to go after bigger contracts for Government jobs, builders or retirement villages.”

At this stage, the future of the Napier plant was unclear, and Smith said over the coming months, the company would await local government and central government’s decisions around zoning for cyclone damage.

Smith said Bremworth had been very proud of the Whanganui plant’s performance and there were good outcomes from a production perspective.

“Whanganui is a jewel in Bremworth’s crown because of the production of felted yarn, which is rare in the Australasian region.”