With the closure of Australia''s second largest wool combing facility in Geelong, Victoria and the recent shutdown of the country''s biggest wool processing plant, Michelle''s in Adelaide the wool processing in country is becoming unviable said  Australian Wool Processors Council.

The Council''s President, Jim Robinson says the dream of value adding Australian wool has now turned into a nightmare. "The cost of running the plant in Geelong in Australia are too high compared to the low labour cost countries eg China, India and Eastern Europe even.

"Despite these plants are capital intensive by nature a similar plant in China might employ 500 but its at one twentieth of the labour cost. It''s still way ahead."