The Wool Company was launched in Wellington yesterday , with Ms Gattung as foundation chairwoman.
Ms Gattung said in an interview she was excited to have been approached to help promote such an important part of New Zealand's rural industry.
The concept of The Wool Company would be based on the success of New Zealand Merino Company, which had achieved remarkable success with its Icebreaker and Smart Wool brands.
The Wool Company would promote New Zealand strong wool for the premium quality wool carpets and textiles industries, she said.
Other board members are PGG Wrightson chairman Craig Norgate, Dunedin businessman Alan McConnon, Bendigo Station owner John Perriam and professional director Keith Sutton.
The Wool Company has bought PGG-W's strong wool business for $37.5 million - less than the earlier announced sale price of $46 million.
Wool Grower Holdings, a new growers' co-operative, will have a 60% voting interest and 50% equity interest in the Wool Company.
PGG-W will initially have a 40% voting right.
Wool Grower Holdings is borrowing $10 million from PGG-W to buy a stake in the Wool Company, which is itself paying PGG-W with $10 million of ordinary shares, plus convertible preference shares ($17.5 million) and cash ($10 million).
As Wool Grower Holdings invests further capital, the preference shares owned by PGG-W will be converted to ordinary capital.
Mr Norgate and Wool Grower Holdings chairman James Aitken said: "We want to establish a strong New Zealand wool brand and partner internationally with recognised players, thereby improving industry returns and ensuring sustainability of wool production on the farm."
The Wool Company was the result of much hard work by many people in the wool sector, led by the Wool Industry Network, an initiative of Meat and Wool New Zealand and New Zealand Trade and Enterprise, Mr Norgate said.
Ms Gattung said it was important for New Zealand's 15,000 strong wool growers to have an organisation that could get alongside retailers and manufacturers to promote the wool as a quality product.
Almost 70 million kg of strong wool was produced in New Zealand last year to March 31, about 30% of world production.
The strong wool industry had been dying a slow painful death and it was important to rescue it before it reached terminal velocity, she said.
"Sheep are being bred to produce two lambs rather than for their wool.
And who can blame farmers for trying to get the best return they can?"Ms Gattung, who had committed herself to the board for several years, said it was important to follow every avenue of promoting the wool, including working with interior decorators.
"We [the board members] are all busy people but we know we have to do this. We want to do it because it matters.
"Collectively, we can make a difference."
Mr Norgate said that given Ms Gattung's experience and passion for New Zealand's international success, her appointment made a clear statement about the intention of the founding partners of the company.
