Chargeurs Wool
Chargeurs Wool specializes in topmaking, which consists of designing wool blends that successfully meet the needs of spinning mills. It is a world leader in combed wool sales.
Following scouring which rids the wool of impurities, raw wool is carded and combed into tops : a large sliver of wool which is sold to spinners.
Tops are made from blends, which ensure consistent production quality. Fibers are measured in microns which determine the final uses.
Targets exceeded
Chargeurs Wool greatly exceeded its 2011 targets despite an 8% decrease in sales volumes. These good results were obtained against a backdrop of wide price swings for raw wool. In the initial six-month period, prices rose 37%, before declining by 23% in the next six months. The business’s performance attests to the strength of its strategy based on carefully selecting contracts and reducing their duration and on keeping inventories low. While the first half of the year was shaped by healthy demand, primarily in North America and Europe, the second half benefited from this strategy as demand contracted most notably in the fourth quarter. The business’s wool combing operations in China shifted their focus towards export markets to avoid getting caught up in a price war led by excess local capacity. Chargeurs Wool also benefited from its positioning in high-end products, which matched a trend in the global market. Fine wools are increasingly being used in luxury apparel and quality leisurewear. This lasting trend in high-range casual and leisure wear reflects customers’ renewed focus on comfort, naturalness and environmental preservation—values that fit well with wool.
In the face of limited visibility and global economic uncertainty, Chargeurs Wool can count on a strong reputation built on quality products and reliable deliveries, especially in Europe and the United States. It will pursue its strategy of preferring margin over volume, backed by the most flexible production base possible. In light of this situation, Chargeurs Wool anticipates a slight decline in volume in 2012 but maintains its profitability targets.