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Impact of Cyclone Gabrielle – July Update

Operational Update24 July 2023BRWConsumer Discretionary

MARKET RELEASE
25 July 2023


Impact of Cyclone Gabrielle – July 2023 update


Bremworth Limited (NZX: BRW) provides the following update on its mitigation and business

continuity plans following Cyclone Gabrielle which impacted its Napier yarn spinning plant on 14

February 2023.


Team wellbeing


A detailed assessment of the damage to the Napier plant and buildings, involving external

engineering specialists over the last few months, has now been completed and the results are being

reviewed by the loss adjustors and Bremworth. The insurance claims process is expected to take a

number of months to complete.


Bremworth has been very conscious of the impact on staff during this time. While employees have

been paid since the plant went offline in February 2023, the Company is aware that team members

are looking for more clarity around their future at the Napier plant. In response to staff feedback,

Bremworth is presenting several options to team members that may assist with their personal

circumstances and wellbeing – specifically, voluntary redundancy or expressions of interest for

redeployment to Bremworth’s Whanganui plant. Career and financial advice, as well as emotional

support, is available to all employees.


CEO of Bremworth, Greg Smith, commented: “Since the weather event in February, our priority has

been our people. While we do not yet have a definitive view around the future of the plant, we are

doing all we can to support them and working through the process in good faith.”


Business continuity plans in place and progressing well


Insurance payments to date have ensured Bremworth is in a strong position to continue to

implement its mitigation and business continuity plans, support affected staff and meet its ongoing

obligations. Further insurance payments are expected upon completion of the assessment of

damage to buildings, plant and equipment, and the loss of inventory and profit, due to the

interruption to the business from Cyclone Gabrielle.








Bremworth confirms that alternative supply arrangements for dyed fibre and yarns are proving

successful, putting the Company into an encouraging position to continue to supply key product

ranges to its distribution partners. The new hybrid supply chain model is complementary to

Bremworth’s existing operations and will insulate the Company from future events that could

potentially disrupt operations.




ENDS



For further information please contact:


Greg Smith

Chief Executive Officer

gregsmith@bremworth.co.nz

+64 21 711 622

Mark Devlin

Director

IMPACTPR.CO.NZ

+64 21 509 060

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.

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