Merino JV for Wrighston

By Phil Boeyen, ShareChat Business News Editor

Tuesday 27th March 2001

Rural services company Wrightson (NZSE: WRI) is planning a joint venture to sell and market New Zealand merino wool.

The company has signed an agreement with Merino NZ to work together to maximise grower returns, reduce production, delivery and supply costs, promote production efficiencies and increase demand for merino fibre.

Merino chief executive John Brackenridge says the new company will commercialise the existing Merino NZ activities and combine them with Wrightson's fine wool business.

"We see this as the best way to build on the strategies we have already employed to position NZ Merino as a successful global brand.

"Wrightson is the country's largest wool broking firm, with a long and successful history in the merino business, and it currently handles over 70% of the NZ merino clip."

Wrightson MD Allan Freeth says formation of the joint venture would be significant for Wrightson, involving the transfer of its total merino business to the new company.

"We are confident it would bring significant benefits to the merino industry and to our own shareholders."

Under the planned structure of the joint venture grower interests will have four seats on the board and two directors will represent Wrightson.

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