Last week, Christchurch-based Wool Equities Ltd, as part of a consortium of New Zealand businesses, completed the purchase of the plant of QualitYarns Ltd in Milton, saving the mill from closing for a second time. The mill first closed in 1999 with the loss of 54 jobs.
The new company operating the mill will be called Bruce Woollen Mill Ltd, and Wool Equities Ltd will own a 67% stake in the company.
Wool Equities Ltd chairman Cliff Heath said the other members of the consortium were previously customers of QualitYarns Ltd and wanted to keep the mill going to supply high-quality wool-based yarns to their respective businesses, ensuring ongoing orders for the new company.
Wool Equities Ltd was approached by a group of knitting and weaving businesses to buy the mill, which produced yarns that were critical to their products.
"The mill was started by farmers to process their wool, and Wool Equities is run by farmers, so you could say that it has gone back to its roots," Mr Heath said.
Wool Equities board members will meet in Milton tomorrow to discuss the finer details, including staffing.
"It's now a matter of finding a step forward."
Asked when the mill would reopen, Mr Heath said no date had been set.
Established in 1897, the Bruce Woollen Mill was created to scour, card and spin and weave wool into yarn, blankets, rugs and clothing fabric. Bought by Alliance Textiles in 1962, the mill closed 37 years later in 1999, before it was bought by QualitYarns Ltd.
QualitYarns issued redundancy notices to its 28 staff in November last year, re-employing 16 on a temporary basis to meet customer orders. In December, Ashford Handicrafts Ltd bought a production line, hiring four QualitYarns staff.
QualitYarns Ltd director Mike Barra said he could not comment for the company, but he personally felt it was a good result.
"It's been a long process but the mill will keep running. It's exciting news."
While QualitYarns still owned the land and buildings, discussions with another party were ongoing around the purchase of them, Mr Barra said.
Bruce ward councillor Gaynor Finch said the purchase of the mill was great news for Milton.
"It's going to make a big difference to Milton. Every job loss is potentially another person leaving town."
