A spinning mill in Napier is set to close after decades of producing high-quality yarn for textiles and knitting.

Design Spun has announced the closure of its mill and dyehouse plant in the industrial suburb of Onekawa.

The closure includes 26 job losses.

Production will ramp down from August 31.

The mill has been operating at its current site on Husheer Place for more than 40 years and produces yarn from a variety of wool and fibres, including sheep’s wool, alpaca wool, silk and other natural fibres.

Design Spun owns a retail store and brand called Skeinz, which has a shop in Onekawa as well as an online store. Skeinz will remain open and continue to stock New Zealand-made yarn.

The equipment from the mill and dyehouse has been sold to a Christchurch-based company.

Design Spun managing director Brendan Jackson said, “This is a bittersweet moment for all of us”.

Design Spun managing director Brendan Jackson says it is bittersweet. Photo / Warren Buckland

“While the sale means yarn processing will no longer take place at our Napier site, resulting in the loss of jobs for our team, we are proud to have achieved two of our three primary goals,” he said, of the sale of the company’s equipment.

“The equipment’s relocation to Wild Earth Yarns [in Christchurch] ensures yarn production remains in New Zealand and that a local supply option continues to be available.”

The company had hoped to keep operations in Napier to support the staff.

“Our initial preference was a business sale and onsite continuity to enable the executive director’s retirement and exit,” Jackson said.

“Unfortunately, that was not achievable.

“The next best outcome was a plant and equipment sale that would allow the manufacturing capability to remain in New Zealand.”

He said trading conditions had been “very challenging” for New Zealand businesses in recent years.

“While there is strong local sentiment for supporting NZ-made products, many consumers are budget-constrained, and lower-priced imports often prevail.”

Design Spun’s property on Husheer Place is leased and will be retenanted once operations conclude.

The company gave a “heartfelt thanks” to its team, customers, and the Hawke’s Bay community for nearly four decades of support.

The wool industry in New Zealand is facing challenges, and sheep farms have struggled in recent years with low wool prices.

In Hawke’s Bay alone, the number of sheep has dropped from about five million in 1990 to fewer than three million currently.

Jackson said that in his view, there was a growing interest in New Zealand wool.

“It is a natural, renewable, and high-performance fibre that meets modern environmental expectations.

“We believe strongly in the future of a New Zealand-based spinning mill embedded in a transparent, innovative, and resilient value chain.”

Of the 26 jobs affected by the closure, 20 are permanent and six are fixed-term.

Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.