July 10, 2025

Design Spun to end local yarn production in Napier

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Photo Source: Pexels.com

Napier-based textile manufacturer Design Spun will cease operations at its Husheer Place site by the end of August. The company cited “very challenging” market conditions and a failed business sale as reasons for the closure, which will result in 26 job losses.

Moving manufacturing capability to Christchurch

Design Spun may be exiting Napier, but its commitment to New Zealand manufacturing continues. The company sold its spinning and dyeing equipment to Wild Earth Yarns in Christchurch.

“Our initial preference was a business sale and onsite continuity to enable the executive director’s retirement and exit,” said Jackson. “Unfortunately, that was not achievable.”

Addressing price pressure and offshore competition

Jackson pointed to macroeconomic forces putting pressure on New Zealand-based manufacturing. “While there is strong local sentiment for supporting NZ-made products, many consumers are budget-constrained, and lower-priced imports often prevail.”

The Skeinz retail operations will continue

Skeinz is staying put even if the mill is closing, the retail arm will maintain operations in Onekawa and online, and they will continue to sell a full range of New Zealand-made yarn to its loyal following.

Closure ends decades-long contribution to wool sector

Design Spun has been a key part of Napier’s textile industry for over 40 years, producing yarns made from sheep’s wool, alpaca, and silk. The closure brings an end to a longstanding local operation and reduces Hawke’s Bay’s direct role in wool processing.

While Design Spun’s mill is closing, Jackson spoke confidently about wool’s role in future manufacturing. “It is a natural, renewable, and high-performance fibre that meets modern environmental expectations,” he said.

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

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