European Wool Processing Giant Closes Door

Wool exporting and processing group Dewavrin has joined the large exodus of European companies reluctantly raising the white flag and admitting defeat.

In a statement issued last week, Christian Dewavrin said "it was with a real sense of sadness and deep emotion" that after 117 years of trading in the Australian wool industry, it would close its Australian wool operation. The closure is effective immediately.

"Our company's global strategy is to pursue new development outside the wool environment as well as strengthening our continued focus on lanolin and cosmetics."

He said as a matter of course, all existing wool contracts would be honored.

The French-based company was one of the few wool processors operating outside China, and its closure has been perceived by industry commentators as a further sign of the weakened European wool sector.

"We are disappointed to see that yet another European wool customer has closed," commented Rita Kourlis Samuelson, international wool marketing director for the American Sheep Industry Association. "Dewavrin had purchased U.S. wool in past years and helped the U.S. wool market during key seasons. This continues the shift of international U.S. wool customers from Europe to China, eastern Europe and India."

Reprinted in part from Stock and Land, Australia

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