New merger leaves just one early-stage wool facility in Australia

Geelong and Adelaide wool processors have merged to become Australia’s sole early-stage wool processing facility as the nation’s clip continues to shrink.

A new merger has left one early-stage wool processing facility in Australia, as the new company hopes it will keep domestic processing available for growers long-term.

Geelong and Adelaide wool processors have merged to become Australia’s sole early-stage wool processing facility.

EP Robinson Pty Limited and Michell Wool have announced the establishment of Adelaide-based Australian Wool Processors, set to open in late-August.

EPR managing director Jim Robinson said the reduced wool clip challenged Australian wool processors and caused the companies’ merge.

“(The wool clip) is down to now 258 million kilograms for this current season and in the meantime there’s been an increase in the volume of greasy wool being processed offshore,” Mr Robinson said.

“(We decided) let’s do it under the one roof, so the remaining player can get the volumes and become viable.

“When I first joined there would have been 20 wool processors across the country, and now it’s down to one.”

He said clientele included growers from Melbourne, Geelong, Adelaide, Fremantle and across NSW.

AWP will employ “some” of the 33 current EPR staff, and orders will be completed over the next few weeks before the plant finishes production in late August.

“Unfortunately our workforce is the one who suffers from this but we’re supporting them and we’re hearing there are already job offers,” Mr Robinson said.

He said they received ACCC approval for the companies to merge, and he hoped it would allow producers to continue having wool processed in Australia.

There were 18 countries that sought Australian-processed wool.

“The alternative could have been both companies fight to the death and close,” Mr Robinson said.

“It’s been merged and under one roof with the hope that maybe better global economic conditions, demand can improve wool prices for growers and they can get back into wool, and Merino wool.

“I hope the federal government realises that this industry is still worth keeping.”