A wool processing plant has been rescued out of receivership. Christchurch Yarns, which makes yarn for wool carpets, has been been bought by a new company, set up for the purpose.
Christchurch Yarns was put into receivership in March this year, but continued processing on a reduced scale to fill orders.
The new owner NZ Yarn was set up by Elders Primary Wool and the farmer-owned Primary Wool Co-operative to buy the plant so that it could continue to process New Zealand grown wool.
It has been described as the only serious, independent carpet yarn spinning facility left in the southern hemisphere and a range of carpet manufacturers rely on it solely for their woollen yarn.
NZ Yarn is not saying how much it paid for the plant, but when it launched its capital raising bid last month it was seeking a minimum of $3 million.
While the sale has gone unconditional, NZ Yarn will continue to seek investment from wool growers up until 19 November. The deal will be settled two days after that.
Elders Primary Wool's chairman Stu Chapman says it was imperative to keep the business going as an independent, fully operational local yarn spinner.
Mr Chapman says it will provide substantial commercial opportunities for his company and its Just Shorn carpet programme, as well as the wider New Zealand wool industry.