GUNNEDAH'S second largest employer Michell Leather has received a $1 million grant – the largest of five Namoi Valley Structural Adjustment Package allocations the Federal Government handed out yesterday.
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The leather company, a Quirindi zeolite company, a Narrabri/Wee Waa engineering company, a Walgett cafe and a proposed Narrabri rabbit abattoir were awarded a total of $1.4 million in grants.
The grants, announced at the leather tannery by Deputy Prime Minister and Member for Gwydir John Anderson, were the first projects funded under the Federal Government's $20 million promised package.
They were welcomed by Gunnedah, which was recently hit by the loss of a major employer when the owners of a pet food factory destroyed by an explosion decided to relocate the business.
Dubbed the Southern Hemisphere's oldest and largest tannery, Michell Leather, which employs more than 100 workers in Gunnedah, is to undertake a $4 million upgrade of its Quia Rd plant.
Michell Leather Gunnedah plant manager Richard Churchill said the tannery produced between 18,000 and 22,000 chrome tanned cattle and sheep hides – equivalent to 390 tonnes – that are exported to become leather lounge coverings, shoes and fashion accessories.
He said the 130-year-old company took over the town's leather industry after acquiring Hassals' Gunnedah tannery in 1991.
The operation was known as New England Leather but the business was incorporated under the Michell banner in 1998.
Michell Leather administration manager Michael Hawke said the funding was vital to upgrade and improve the plant's safety and
efficiency.
"The plant uses wet blue chrome tannery techniques that were introduced in 1976," Mr Hawke said.
"There are 12 nine tonne barrels and four 4.5 tonne barrels that have been worked since the 1970s and are to be replaced.
"A computerised dosing system will be fitted and improvements will be made to the hide handling system, flesher and sammer machines."
The tannery sources hides from Inverell's Bindaree Beef and once had lucrative contracts with the former Gunnedah and Tamworth abattoirs.
Mr Anderson said the five grants totalling $1.4 million would ensure the long-term future of the Namoi through counteracting financial fallout stemming from the NSW Water Sharing Plan.
Namoi Valley Advisory Committee chairman Kevin Humphries also welcomed the announcements, which came after submissions were received for the grants.
