December 5, 2008
Agribusiness company Elders will close down its international wool processing arm in Europe as part of its restructure. BWK AG, which is Elders' international wool processing arm, will cease business at its mills in Germany and Turkey.
"The closing of BWK is very disappointing news for the American wool industry," stated Rita Samuelson, director of wool marketing for the American Sheep Industry Association. "BWK has been an important buyer of our wools since the early 1990s and was a well-respected, savvy trading partner."
Elders Rural Services managing director, Mike Guerin, says the company will focus its attention on Asia. He says the processing operations in Germany were under-performing, and the cost of processing wool in Europe is not a viable option.
"The American wool industry was able to develop deep relationships with BWK over the years and they had proven themselves as a company that would purchased a broad range of American wool in large quantities at fair market prices," concluded Samuelson. "Their absence in the U.S. market will be missed."
Staff contact: Rita Samuelson, ext. 29