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Proposed sale of Summit Wool Spinners Oamaru plant

Below is a media release on behalf of Summit Wool Spinners.

Proposed sale of Summit Wool Spinners Oamaru plant and business to Canterbury Spinners

Summit Wool Spinners Ltd, (owned by Sumitomo Corporation of Japan) has entered into a conditional sale and purchase agreement for the Oamaru plant and business with Canterbury Spinners Ltd, a subsidiary of the carpet manufacturer Godfrey Hirst New Zealand Ltd. The sale is subject to consultation with employees and their unions.

“Sumitomo has made a decision to sell Summit. This was driven by a number of factors affecting trading results including an unfavourable exchange rate and less local demand for wool carpets. International demand for woollen carpet yarn has also been affected by the Global Financial Crisis,” said the managing director of Summit, Mr Harry Ogawa.

“From Sumitomo Corporation’s perspective, Summit was becoming isolated from the parent’s overall global textile business.

“Summit employs loyal and skilled people and produces top quality yarn. Unfortunately demand for good wool yarn to be used in carpet and rugs have fallen resulting in a difficult trading time,” he said.

The acquisition is targeted for the end of February 2013.

A consultation process will now be undertaken with employees and their unions.

ENDS

About Summit Wool Spinners http://www.summitwool.co.nz/
Summit Wool Spinners Ltd is New Zealand's largest independent spinner supplying top quality carpet and rug yarn for both domestic and international markets. Sumitomo Corporate has owned Summit since 1992 and is one of Japan’s largest listed companies. Established in 1919 Sumitomo has offices in 65 countries employing approx. 72,000 worldwide. (as of March 31 2012).


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