A new deal with a European flooring distributor has the potential to absorb more than two million kilograms of New Zealand crossbred wool a year.
Wool Partners International (WPI) has announced the marketing partnership with Headlam Group, Europe's largest flooring and carpet distributor, and said the planned relaunch next January of a Wools of New Zealand-branded carpet range would create demand for 600,000kg of wool in the first year.
"Further ranges will be developed and launched later in the year, building to an expected total demand of two million kilograms per annum, almost 2% of New Zealand's strong wool clip and equivalent to carpeting about 15,000 homes," WPI chief executive Iain Abercrombie said.
The deal created a new market for New Zealand wool, displacing other countries.
In the 2009 financial year, Headlam generated revenue of $NZ1.5 billion and an operating profit of $70 million.
Headlam was formed in the 1990s after a series of acquisitions, and employs 1600 staff in the UK, France, Switzerland and the Netherlands.
In the UK alone, it has 4000 retailers and ownership of 49 carpet brands.
It adds to WPI's 40 new international marketing agreements with manufacturers and distributors negotiated in the last year.
Headlam and WPI will relaunch a carpet range known as Artwork, which has been coloured and styled by Wools of New Zealand and its Centre of Wool Excellence at Ilkley in the UK.
Wools of New Zealand has also worked with Headlam on point-of-sale material to help retailers sell customers the merits of New Zealand wool carpet.
