GLOBAL wool processing giant Schneider Group is in the throes of setting up a top making carbonisation plant in Sadhat city, Egypt, as part of a strategy put together by partnering European mills to build processing capacity near Europe.
It will be the first foray by a wool processing company into the African nation, which is looking to offset production capacity lost with the closure of its second Italian mill this year.
Schneider Group, which was set up in 1922 by wool buyer Giovanni Schneider has grown to become a world leader in processing and supplying superfine wools and precious natural fibres, and has processing and sales branches in five continents.
Schneider Australian wool buyer Don Belgri said the company had never operated out of Egypt but had targeted the area because of its close proximity to European markets and production capacity.
“Egypt is new for wool processing of this type however it has always been a small customer of Australia wool,” Mr Belgri said.
“The terms of trade offered there are good in terms of cost of labour and power.”
Asked if the new business venture was an indication of improvements in Europe’s wool buying capacity, Mr Belgri said it was “early days yet”, but countered that the move was very promising for the wool industry.
Egypt accounted for 0.1 per cent of Australian wool exports in October this year, compared with China at 80.65pc, according to the Australian Bureau of Statistics.
The Egyptian mill is set to be operational by October 2010.
Email a friend