15 Dec 2008

Wool joint venture planned

12:32 pm on 15 December 2008

Cavalier Carpets plans to form a joint venture with David Ferrier to cut capacity in the wool scouring industry.

The carpet maker says there is a mismatch between the number of scouring facilities and sheep numbers, which have fallen substantially in recent years because of drought and a rise in farms being converted into dairy operations.

Ferrier has a 7.5% stake in Cavalier's commission wool scouring operations in Hawke's Bay and Timaru.

The deal requires shareholder and regulatory approval.