A $20m Canterbury factory and a big bet on wool’s second life
Monday, 15 June 2026
A new $20 million wool factory in Canterbury is expected to create about a dozen jobs as it tries to turn strong wool into higher-value materials for everyday products.
The Government is contributing $8m through the Primary Sector Growth Fund, with Wool Source Manufacturing and its owner, the Wool Research Organisation of New Zealand, funding the rest.
The factory is designed to process 1 million kilograms of wool a year and make wool-derived particles, powders and pigments. Those materials can be used in products such as personal care items, printing inks, textiles, bioplastics and 3-D printing materials.
New Zealand exports most of its wool as fibre, rather than turning it into finished or higher-value products here. Wool Source says the Canterbury factory is part of a wider push to capture more of that value in New Zealand.
Chief executive Tom Hooper said developing new uses for wool was vital to lifting long-term demand and improving returns for growers.
Hooper said 1 million kg represented about 1% of New Zealand’s total wool clip.
“The real significance lies in the value that can be created from that one per cent,” he said.
The factory gives Wool Source a chance to prove whether strong wool can be turned into higher-value products in commercial volumes.
Strong wool is used in products such as carpets, rugs, furniture and acoustic panels, rather than clothing worn close to the skin.
Prices have improved sharply this year after a long period when wool often struggled to cover the cost of shearing.
The best-prepared fleeces have recently topped $7/kg, but farmers and industry groups say stronger long-term demand is needed if wool is to become a reliable source of income again.
Hooper said the company had multiple customers for its particles, powders and pigments, but exact numbers were commercially sensitive.
The plant was part of a wider push to add more value to New Zealand wool, he said.
“A number of innovative new products are emerging across the strong wool sector, which is encouraging.
“Our focus is on developing and scaling Wool Source products so they can be as successful as possible.”