The integration of Australian Wool Innovation (AWI) and Australian Wool Services (AWS) is nearing completion, almost three months late.

According to AWI chairman Ian McLachlan, after months of drawn-out negotiations, AWS has settled its liability issues with the UK-based IWS Pension Fund, which allows for the integration to finally proceed.

“The contract outlining the purchase of AWS assets by AWI has now been signed by the chairmen of both companies and subject to AWS shareholder approval on August 28, the two companies will be fully integrated during September,” Mr McLachlan said.

He added that AWI would be buying assets owned by AWS including the Woolmark brand. “Under AWS, the value of the Woolmark brand and its current licensing business has been declining. As an industry, we need to adapt significantly to meet the international challenge to survive and thrive in the highly competitive apparel market. This integration will be instrumental in propelling Australia’s wool industry into the global market. AWI is well-positioned to turn the current situation around and lead the Australian wool industry into a prominent position, but this will take some time given the current state of the business,” he said.