Yesterday, QualitYarns New Zealand Ltd announced it had sold a production line of 13 machines to Ashford Handicrafts Ltd, of Ashburton.
Four weeks ago, 28 staff were issued redundancy notices as mill management fought to keep the factory running. Sixteen staff were re-employed on temporary contracts to the end of this week to meet customer orders, and four of those 16 have been employed by Ashford to operate the production line.
QualitYarns managing director Mike Barra said it was"excellent" to have Ashford's confidence in the mill and that negotiations were continuing with other parties.
There are more than 80 machines at QualitYarns, but Mr Barra said the sale of the 13-machine production line was "significant". This line manufactures Corriedale, Merino and Merino/Silk slivers.
Mr Barra hoped negotiations with one interested party would be concluded by the time the mill closed down for the Christmas break tomorrow.
One company, InsulPro, already operates from the mill and produces NOVAtherm insulation blankets there.
Ashford Handicrafts operates a factory, craft village and spinning wheel museum in Ashburton.
Richard Ashford, who owns the family business with wife Elizabeth, said they were pleased to continue manufacturing slivers at the Milton mill.
"The quality of the sliver produced at the Milton mill is excellent. We've employed some very experienced staff from the mill."
A sliver is a long bundle of fibre generally used to spin yarn.
Ashford had been using QualitYarns products for about four years.
"We're looking forward to being more involved with Milton," Mr Ashford said.
Ashford Handicrafts Ltd operates from a 3000sq m factory on a 2ha site on State Highway 1, in Ashburton. The 1920s millhouse is next to the factory and houses the showroom, classroom, craft shop, museum and cafe.
