“It is critical that our management has the time to review and investigate the current operations to see how we can get the Woolmark and the licensing business to a positive commercial position. It is very clear to all that this is a difficult business and will require a completely fresh and new start,” stated Mr McLachlan.
Ian McLachlan acknowledged that this integration will be difficult and requires streamlining of the new assets to ensure that the new business quickly returns to a positive position.
“This sort of change will have a short term impact on resources of both companies as we move forward. You can expect the company's services to be very closely re-aligned to the geographic market place,” said Mr McLachlan.
“AWS will need to manage the transition of its resources including staff to AWI where appropriate and this will happen progressively over the next two months. To date, AWS has requested that we do not discuss the staff redundancies.
“The redundancy figure of $5 million in the AWS General Meeting Explanatory Note is the figure that AWS Board believed would be required to support the integration with AWI.”
Mr McLachlan said that any future decisions about the management of the integrated company are the responsibility of the AWI CEO, who has the full backing of the AWI Board.
“It is our aim to create a new business that will build and drive sustainable long term demand for Australian Merino wool andwe are pragmatic and realistic as to how long this will take.
“This integration will allow the Woolmark brand to leave its financial, administrative and legacy issues behind and focus on a much brighter future under AWI.
“Our plans reflect our commitment to building a world-class organisation.”
Australian Wool Innovation Limited
marketing@alchempro.com
