Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

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).


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

'Irregular Accounting': Voluntary Suspension Of Fuji Xerox Govt Contracting

This suspension gives the Ministry of Business, Innovation, and Employment time to understand the full implications of the report from FUJIFILM Holdings into irregular accounting practices at FXNZ. More>>

ALSO:

MPI: Cow Disease Detected In NZ For First Time

MPI is responding to the detection of the cattle disease Mycoplasma bovis in a dairy herd in South Canterbury... The disease is commonly found in cattle globally, including in Australia, but it’s the first detection of it in New Zealand. More>>

South Island Flooding: Focus Moves To Recovery

As water recedes throughout flood-impacted areas of the South Island, Minister of Civil Defence Nathan Guy has praised the efforts of those who were involved in the response to the flooding... More>>

ALSO:

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fund For PPP Plans: Govt Embraces Targeted Rates To Spur Urban Infrastructure

The government's latest response to the Auckland housing shortage will see central government and private sector firms invest in 'special purpose vehicles' to fund essential roading, water and drains that Auckland Council can't fund without threatening its credit rating. More>>

ALSO: