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Wrightson pulls out of wool venture

By Phil Boeyen, ShareChat Business News Editor

Monday 28th May 2001

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Rural services company Wrightson (NZSE: WRI) is withdrawing from plans to set up a specialist strong wool company with the Wool Board.

As recently as last week the company says it confirmed its involvement with the project at grower meetings in the South Island.

However MD Allan Freeth says it has become clear that the two organisations share different visions.

"Wrightson believes that the majority of growers, like Wrightson, wish to see a commercial solution for their strong wool company.

"Wrightson will continue to build and extend its own strong wool services and invest in the implementation of its integrated fibre management (IFM) strong wool business."

Currently 18% of the company's strong wool is handled under its IFM business, whereby Wrightson facilitates direct supply contracts between wool growing clients and wool processors and end users.

Wrightson says the announcement to pull out of the strong wool project does not affect plans to set up a fine wool joint venture with Merino New Zealand.

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