Itochu decision reflects 'poor leadership and decline' in Australian wool industry
10/09/2007
Japanese textile and machinery trading group Itochu has announced the closure of its wool subsidiary in Australia.
Itochu Wool Limited (Australia), with its head office in Parramatta, New South Wales, has been in operation for exactly 50 years, ten years under the current set-up (with 65% of control of the business in the hands of corporate bosses in Tokyo). Its principal activity has always been to buy and sell wholesale wool from Australian sheep farmers.
Itochu will continue to trade in Australian wool, but will run its operation from Japan.
The industry in Australia has reacted with dismay to the announcement. Chairman of the Australian Wool Growers' Association, Martin Oppenheimer, told local broadcast media that this development is the direct result of declining wool production in Australia and poor industry leadership.
Itochu Wool Limited (Australia), with its head office in Parramatta, New South Wales, has been in operation for exactly 50 years, ten years under the current set-up (with 65% of control of the business in the hands of corporate bosses in Tokyo). Its principal activity has always been to buy and sell wholesale wool from Australian sheep farmers.
Itochu will continue to trade in Australian wool, but will run its operation from Japan.
The industry in Australia has reacted with dismay to the announcement. Chairman of the Australian Wool Growers' Association, Martin Oppenheimer, told local broadcast media that this development is the direct result of declining wool production in Australia and poor industry leadership.
"It's certainly a sad day for the wool industry, and it's certainly a sign of decline. We've really got to address the issue of sheep numbers and wool production," he said. "We've got to look at our whole industry and we've got to look at our leadership to see if we can grow our industry again. I'd say with the current leadership and the current direction that we have, it's not going to happen. We're just going to continue to see decline."
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