Articles
11 June 2026 - Wool Source has welcomed New Zealand Government support for a new plant to produce scale volumes of wool-derived particles, powders and pigments for high-value market applications.
The project is being backed through the Primary Sector Growth Fund, with the Government supporting a $20.16 million programme led by Wool Source to establish the facility and prove scale production capability in Christchurch.
The funding will help accelerate construction of the production facility with capacity to process one million kilograms of wool a year, enabling Wool Source to supply greater volumes into emerging applications for wool-derived materials across sectors including inks, 3D printing, personal care, bioplastics and textiles.
Wool Source transforms wool into fine particles while retaining its performance benefits in versatile, biobased materials. These products add new functionality or replace existing ingredients with a renewable, ethically sourced alternative in end markets collectively worth more than NZD $50 billion globally.
Tom Hooper, chief executive of Wool Source, said securing Government backing alongside funding from the Wool Research Organisation of New Zealand (WRONZ) marked a major milestone for the project.
“We are hugely grateful to the Ministry for Primary Industries and the Primary Sector Growth Fund team specifically for their engagement and support.
“This investment provides the platform for Wool Source to move from pilot-scale activity to commercial-scale production and ultimately put significantly greater volumes of product into market. It will strengthen our ability to service brand-new demand for the benefit of wool growers, the strong wool sector and the New Zealand economy.”
An existing pilot plant based at Lincoln University near Christchurch has helped prove the concept, he said.
“This next step is about commercialising that progress and creating a pathway for larger, more stable demand over time.”
Earlier this year, Wool Source exported 8T of wool particles to a personal care manufacturer in Japan, demonstrating early international demand for the technology.
Mr Hooper acknowledged Lincoln Agritech and Lincoln University’s development of the research and support of the existing pilot plant as being instrumental in helping the technology reach this stage.
Andrew Morrison, chair of WRONZ, said strong wool pricing had improved over the past year, but the sector’s long-term strength would depend on a range of existing and new uses for strong wool including wool-derived materials produced by Wool Source and the growing demand for wool carpets.
“This facility will not transform the strong wool sector on its own but represents a critical step alongside other good work already happening across the industry, including wool carpets and other established uses that are helping rebuild demand for New Zealand wool.
“WRONZ is pleased to play a critical role as the specialist funder of post-harvest research, development and knowledge transfer for New Zealand wool. Our focus is on helping create and deliver innovative, value-added products from our wool, supporting farmers to achieve maximum returns.
“This project will help the sector unlock new opportunities and improve the long-term sustainability and profitability of the industry.”
Construction of the facility at an undisclosed site in Christchurch is expected to begin by the end of the year with commercial production set to get underway next year.
