Woolmark and AWS to merge
AWI chairman Ian McLachlan has welcomed the decision by Federal Agriculture Minister Peter McGauran and the Australian Government to support the integration of AWI with Australian Wool Services (AWS).
Mr McLachlan says the announcement paves the way for the integration to proceed, after two years of preparation with support from peak industry bodies and now the Australian Government. He says integration by 30 June 2007 is possible, following the minister’s decision to support the integration with funding of $15 million.
“The process now includes the negotiation of contracts and a period of due diligence,” Mr McLachlan says. “This $15 million allows AWI to secure key assets held by AWS, including the Woolmark brand. The funding provided by the government will be spent only on securing key wool industry assets that are owned by AWS; it will not be used to fund other AWI activities.
“As one of the most important announcements in the history of the wool industry, we need to be very clear about what the integration means. It means that vital assets, in which woolgrowers have invested over decades, can be reinvigorated and put to use to build demand for Australian Merino wool. We ask the industry to support both companies through this process. It will provide clarity for our international customers, keep key industry assets in the hands of Australian woolgrowers and achieve what the industry has desired for more than two years.”
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