Future of Albany Woollen Mills secured

April 3, 1996   

An incentive package which will secure the future of Albany Woollen Mills, while at the same time contributing to the diversification of Western Australia's manufacturing base was announced today by the State Government.

Minister for Commerce and Trade and Regional Development, Hendy Cowan, said the package would assist Nobel Investments Pty Ltd to establish an $18 million integrated synthetic yarn and rug manufacturing facility at Canning Vale.

The Minister said that such a manufacturing industry - producing polypropylene yarn - would be new to WA and would be aimed mainly at Eastern States and export markets.

"Up to 100 jobs will be available at Albany and a further 33 new jobs at Canning Vale," Mr Cowan said.

"The company will receive a $2.8 million interest-free loan for a term of five years.  The loan will be convertible into a grant, subject to specified performance criteria, including employment levels and actual investment.

"Nobel Investments is part of an international group which has extensive South-East Asian operations.  The polypropylene yarn manufacture will integrate well into these existing operations.

"For its part, the Albany facility will become an integral part of the company's WA operations.

"The threatened closure of Albany Woollen Mills would have been a severe blow to the town in terms of employment and flow-ons to the local economy.

"Through the involvement of the Nobel group, and with the support of the Government, Albany Woollen Mills will continue to be a major employer."

Under the incentive package, effluent headworks charges to a maximum of $500,000 for the Albany site will be provided.

"Parallel with the Albany development will be the creation of new jobs in metropolitan Perth and the generation of export revenue for the State," Mr Cowan said.

"Import replacement is also likely as WA currently has to buy the product concerned from overseas."

"It was recognised by most people involved with Albany Woollen Mills that the regional facility had to become part of a larger, fully-integrated operation if it was to be competitive.

"The operation will receive a subsidy to alleviate freight cost disadvantages in its early stages. There will also be a rebate on stamp duty for the purchase of the Albany Woollen Mills' assets."

Mr Cowan said the Canning Vale plant would be built on land sold to the company by Landcorp.  The land, valued at $2.8 million, would form part of the security for the company's loan.

"Nobel will also receive an investment incentive, in the form of an interest subsidy to a maximum of $600,000, based on the company's level of new capital investment in the State."

Mr Cowan said the Government had discussed the future of Albany Woollen Mills with a number of interested parties but the Nobel proposal was the only one which included Albany Woollen Mills being retained as a going concern.

Media contact:  Peter Jackson 222 9595