Wellington, Dec 15 NZPA - The Godfrey Hirst wool scouring plant in Invercargill will close under a plan revealed by carpet maker Cavalier Corporation today.

Cavalier said a rationalisation was needed in the wool scouring industry because a substantial reduction in sheep numbers had reduced the wool available.

Cavalier owns 92.5 percent of Hawke's Bay Woolscourers and Canterbury Woolscourers, while partner David Ferrier owns the rest.

Cavalier said Mr Ferrier has a conditional agreement with Godfrey Hirst to buy its scouring business in New Zealand, which has a unit in Napier and one in Invercargill. This plan is subject to Commerce Commission approval.

Mr Ferrier proposes to close the Invercargill plant and half the unit at Napier, according to Cavalier.

A joint venture will then be created with Cavalier's wool scouring business.

In its 2008 annual report Cavalier said its North Island scour led the industry in quality and customer service and its South Island scour was also emulating its standards.

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