New Wool Innovation Project Targets Global High-Value Markets

As part of the project, a new manufacturing facility capable of processing one million kilograms of wool each year will be established in Christchurch.

A new Government and industry partnership to unlock higher-value opportunities for New Zealand's strong wool sector by transforming wool into advanced materials used in a wide range of modern products. Agriculture Minister Todd McClay and Associate Agriculture Minister Mark Patterson announced the initiative at Fieldays, revealing an $8 million Government investment through the Primary Sector Growth Fund (PSGF) towards a $20 million project led by Wool Source Manufacturing Limited.

The project will focus on scaling up the production of wool-derived particles, powders and pigments that can be used in products such as inks, 3D printing materials, personal care items, textiles and bioplastics. McClay said the initiative has the potential to create new revenue streams for wool growers by positioning New Zealand strong wool as a premium renewable ingredient for global industries seeking sustainable alternatives to synthetic materials.

Christchurch facility to support commercial production

As part of the project, a new manufacturing facility capable of processing one million kilograms of wool each year will be established in Christchurch. The facility will allow the company to demonstrate its technology on a larger scale, conduct customer trials and begin early commercial production. It is expected to play a key role in accelerating the transition from research and development to full-scale market adoption.

Wool Source has developed a process that converts wool into fine bio-based particles while retaining many of the fibre's natural performance properties. These materials can either add new functionality to products or replace ingredients currently derived from fossil fuels. The company is targeting international markets collectively valued at more than $50 billion, reflecting growing demand for environmentally sustainable raw materials across multiple industries.

Industry growth expected to benefit farmers and rural communities

The project builds on earlier work that received Government support and helped prove the commercial viability of the technology. That initial phase also generated strong interest from international customers looking for renewable alternatives to conventional materials.

Patterson said Wool Source has already secured its first large-scale commercial export sale, supplying wool particles to a personal care manufacturer in Japan. Higher-value wool powders and pigments are expected to enter the market as production expands.

The Government believes the technology could eventually redirect up to 20 per cent of New Zealand's strong wool production into higher-value applications.

Industry leaders see this as an opportunity to improve returns for farmers while strengthening the long-term sustainability of the wool sector.

Patterson said the investment is designed to help move the technology to market more quickly, creating benefits for growers, supporting rural communities and helping build a stronger future for one of New Zealand's traditional agricultural industries.

The project also aligns with growing global demand for renewable, ethically sourced materials that can reduce reliance on fossil fuel-based products.