A glimmer of hope has returned to Milton with news that a Christchurch-based company is interested in buying the town's struggling woollen mill.
Wool Equities Ltd announced it had entered into a conditional agreement to purchase the wool processing plant and intellectual property of QualitYarns New Zealand Ltd based in Milton, meeting the mill's former staff yesterday.
Wool Equities Ltd chairman Clifford Heath said the company was in the process of buying the mill, meeting former QualitYarns staff to let them know what was going on and to gauge if many were available to work.
He expected to announce a final decision about the mill's purchase next week.
In the announcement listed on the NZX website two weeks ago, Wool Equities Ltd stated that successful completion of the conditions would see the combined group manufacture and supply high quality New Zealand yarns, predominantly to the New Zealand textile industry.
One former mill worker said it was promising news but it was still too early to tell what the possible purchase meant for those who were made redundant last year.
Another told the Otago Daily Times it would be great if the mill did start up again, as it was an important employer in Milton.
Workers were expecting to hear from Wool Equities on Monday about whether they would be offered jobs at the Milton mill.
QualitYarns director Mike Barra said Wool Equities wrote to all staff made redundant by QualitYarns last year, advising them of the development.
"We're working really hard to make this work. We think it's a good outcome."
Mr Barra and remaining staff were in the process of completing the last of the mill's orders and the factory shop would remain open for at least another four months, he said.
Wool Equities Ltd was established for wool growers after the disestablishment of the New Zealand Wool Board in 2003.
The Christchurch based company has more than 7800 farmer shareholders.
Through the mill
The Milton mill's recent history:
• 1999: Alliance Textiles closes mill, 54 jobs lost.
• 1999: Mill reopens after QualitYarns New Zealand Ltd buys mill and equipment, 11 staff, growing to 35 by end of first year.
• 2000: QualitYarns buys worsted spinning line, creating another 13 jobs.
• 2008: Fifteen staff made redundant; mill employing 27 staff.
• 2011: Redundancy notices issued to 28 staff in November, 16 re-employed on temporary contracts to meet customer orders. Ashford Handicrafts Ltd buys a production line in December, hiring four QualitYarns staff.
• 2012: Christchurch-based Wool Equities Ltd announces an intention to buy the struggling mill.
