May 13, 2005
May 13, 2005 -- During the annual meeting of Chargeurs? shareholders, a change in their European operations was decided.
?In a wool market affected by over-capacity, by the steady fall in the dollar over the last two years and by the increase in Chinese production, Chargeurs has decided to discontinue industrial wool combing operations in Europe.?
Rita Kourlis Samuelson observed, ?This is indicative of the many changes in the wool industry, which are most currently affecting Western Europe. Movement from traditional wool-production locations to lower-cost production countries continues to grow into China, India and Eastern Europe. Additionally, business seems to be slow in Western Europe.?
Also, Chargeurs announced changes to their wool-combing operations at their Wagga Wagga, New South Wales plant.
Chargeurs explained, ?In the face of increasingly intense international competition, profit margins have eroded to the point where it has become necessary to discontinue production in the medium-to-course micron range and to focus the plant?s activity on the combing of fine and superfine wool only.? Thirty jobs will be lost due to this change and the group expects, at best, to break-even by the end of the year.