Short staple spinning (SSS) is a much larger and more cost-effective yarn production system than worsted and woollen spinning. The wool industry is 1/20 the size of the cotton industry by weight. However, the value of wool yarns is some 5 times higher than cotton yarns. Wool, a noble fibre, is prized in the luxury, upper quartile knitwear, adventure base layer and suiting markets. It is just 1/6 the size of the global cotton yarn market by value.

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Wool as a blending fibre has huge opportunities to lift value propositions with cheaper fibres in nontraditional products. So too does Pure Wool and Wool Rich blends on the SSS system. 

 

The worsted spinning system represents 80% of the wool apparel market globally and can only handle long wool fibres. Unlike SSS which finds long fibres problematic, the worsted spinning system needs long fibres and thus the price of longer wool from sheep is significantly more expensive than shorter wool. CtnWool™ specialises in using the shorter wool fibres worsted spinners can't use. The process is highly automated, is very efficient and matched with the ability to source the cheaper wool that worsted spinners try to avoid, delivers a highly competitive input for SSS textiles.

 

Much of the worlds worsted spinning of wool is in China, with costs increasing there and market access decreasing. Is there a replacement supply chain for Worsted yarns? We think so, and we believe it starts in the replacement of 2/28Nm worsted yarns for knitwear. The knitwear market represents some 25% of the worsted wool market.

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The woollen spinning system for wool is an old industry. It specialises in using the short wool fibres that the Worsted spinners cannot use. The lower cost of this wool is what enables these spinners to compete in lower count, lower gauge knitwear and coating fabric markets. BUT their cost to spin the yarn is significantly higher than worsted, their technology is slower and more labour intensive. 

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We believe higher count, higher hairiness, bulky yarns for course gauge knitwear is a market opportunity for CtnWool™ by Michell and our spinner partners. We believe woollen yarn used as a weft yarn for coating fabrics is also a market opportunity. ​

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CtnWool™ and SSS working together has the potential to compete very successfully in these established yarn markets.