Air quality issues mire Crailar’s progress - sportstextiles: Lea SportsTextiles

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Air quality issues mire Crailar’s progress

13/08/2014
Flax producer Crailar has reported a $3 million loss in the second quarter as it balanced manufacturing issues at its new plant but says customer orders for the third quarter exceed the plant’s capacity.

Sales amounted to $700,000 in the quarter which ended June 28, compared with sales of $200,000 and a net loss of $3 million for the second quarter 2013.

The company completed the installation of equipment in the facility in bought in December 2013, but air quality issues delayed operating the equipment until late in the quarter which impacted production. Although the new equipment is producing superior fibre, the delay resulted in $100,000 of fibre unshipped at the end of the quarter.

"We made substantial progress in the Second Quarter bringing all processing steps in-house and further improving the quality of our fibres. Production volumes were reduced as air quality challenges were managed but despite this challenge we more than doubled CRAiLAR fiber production in the First Quarter," said COE Kenneth Barker.

"Customer feedback continues to be positive and we are encouraged by forecasts that exceed our current capacity. Our focus this quarter will be on increasing production volume, gross margin and fibre quality. We are hiring and training to support longer hours and additional equipment including a fibre cleaning installation."

Additional equipment designed to provide energy, feedstock, chemical and labour efficiencies are scheduled for installation during the third quarter.

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Crailar forms committee to weigh its financial options 03/06/2015
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Crailar’s CEO resigns after more technical hitches 17/11/2014
European consumers confused about flax 17/07/2014
Adidas shows faith in Crailar with board seat 27/06/2014
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