A new 50% tariff imposed by the United States on Indian goods has created a major opening for New Zealand’s wool carpet industry. The tariff, which includes a 25% penalty linked to India’s continued oil trade with Russia, has significantly boosted the competitiveness of NZ wool carpets in the North American market.
Bremworth chairman Rob Hewett says the shift presents a rare opportunity. “Suddenly North America has become very attractive for NZ wool carpets,” he told Rural News, adding that the company is already in discussions with its agents about expanding exports.
India exported carpets worth around $187 million last year, with 60% going to the US. With those shipments now heavily penalized, Bremworth intends to sharpen its focus on premium wool carpets rather than competing in the crowded synthetic segment.
“NZ wool carpet is internationally a very niche product,” Hewett explained. “In the US, one synthetic manufacturer produces in a week what Bremworth makes in a year.”
Strategic Review and Financials
Bremworth is also undergoing a strategic review, which Hewett said could involve external investors. For FY25, the company reported unaudited revenue of $90 million, up from $80 million in 2024, alongside a normalized EBITDA loss of $13.2 million. After one-off items, Bremworth recorded a net profit of $18.2 million.
Chief executive Craig Woolford noted the year had been challenging, citing weaker volumes and margin pressures, but emphasized ongoing restructuring efforts. These include a $6 million investment to expand production at the Napier plant, hiring new sales representatives in New Zealand and Australia, and improving retail partnerships to reset the business for growth.
