The long-awaited integration of Australian Wool Innovation (AWI) and Australian Wool Services (AWS) is nearing completion, nearly three months late.
AWI Chairman Ian McLachlan said that after months of drawn-out negotiations, AWS has settled its liability issues with the UK based IWS Pension Fund, which allows for the integration to finally proceed.
“The contract outlining the purchase of AWS assets by AWI has now been signed by the Chairmen of both companies and subject to AWS shareholder approval on 28 August, the two companies will be fully integrated during September,” Mr McLachlan said.
Mr McLachlan explained that AWI would be buying assets owned by AWS including the Woolmark brand.
“Under AWS, the value of the Woolmark brand and its current licensing business has been declining.
“As an industry, we need to adapt significantly to meet the international challenge to survive and thrive in the highly competitive apparel market. This integration will be instrumental in propelling Australia's wool industry into the global market.
“AWI is well positioned to turn the current situation around and lead the Australian wool industry into a prominent position, but this will take some time given the current state of the business,” he said.
Mr McLachlan said AWI had been doing extensive planning to ensure a positive takeover of the Woolmark business.
AWI advised industry stakeholders at its strategic planning meeting that a new business plan would take at least 6 to 12 months from integration to develop and make sure that the business was suitable for the next 5 years.
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