Australia's only early-stage wool processors emerges after industry merger

In a major shift for Australia's wool industry, Geelong-based EP Robinson has merged its processing operations with South Australia's Michell Wool to form a new entity -Australian Wool Processes (AWP). The consolidation, announced last month, will see AWP operate solely out of Michelle Wool’s Adelaide site, becoming the only early-stage wool processing operation of its kind left in Australia.

EP Robinson Managing Director Jim Robertson told The Country Viewpoint that both companies had been operating under-capacity and facing financial strain due to reduced wool volumes and sluggish demand over the past few years.

The merger aims to streamline operations and safeguard Australia’s sovereign wool processing capabilities.

“Both plants were losing money. It just made sense to get operations under one roof,” Mr Robertson explained. “Geelong had no future expansion options, while Adelaide offered better long-term viability.”

The Geelong facility will officially close this month, but Mr Robertson assured growers that the transition will cause minimal disruption.

“There may be a slight increase in transport costs, but clients are just pleased there's still some processing happening in Australia," he said.

AWP will continue as a commission wool processor, handling greasy wool for both trading clients and smaller growers—some producing just a bale or two. The plant will also continue processing wool grease, maintaining key customer relationships built by EP Robinson.

Despite the consolidation, Mr Robertson remains optimistic about future opportunities for growth, provided market conditions improve.

“If demand returns and wool prices rise, AWP has the capacity to scale up. The important thing is we've retained processing capability here at home.”

With AWP now holding a unique position in the industry, the move is seen as critical to preserving Australia's ability to process wool domestically in an increasingly globalised market.