Schneider Group is setting up a top making carbonisation plant in Sadhat city, Egypt. It is part of a strategy put together by partnering European mills to build processing capacity near Europe.

It will be the first venture by a wool processing company into the African nation, which is looking to offset production capacity lost with the closure of its second Italian mill this year.

Schneider Group, which was set up in 1922 by wool buyer Giovanni Schneider has grown to become a world leader in processing and supplying superfine wools and precious natural fibres, and has processing and sales branches in five continents.

The company is one of the biggest buyers of Australian merino wool.

Egypt accounted for 0.1 per cent of Australian wool exports in October last year, compared with China at 80.65pc, according to the Australian Bureau of Statistics.

The Egyptian mill is set to be operational by October 2010.

Source: Stock & Land