Bradmill's Exports A Winner
The Age
Tuesday October 15, 1996
Bradmill Textiles has won the export category in this year's Age/Dun & Bradstreet awards for outstanding performance by a Victorian business. Bradmill achieved a dynamic risk score of 89 against an industry average of 57.
Established in 1925, the Yarraville-based fabric and yarn producer has built a strong financial position, particularly in export markets. Overseas sales have leapt from $12 million in 1993-94 to $40 million in 1995-96 and now account for 60 per cent of overall turnover.
Its clients include brand names such as Calvin Klein, Versace and Marks & Spencer. Locally Bradmill supplies Just Jeans and Levi Strauss with denim, its major product, which made up 90 per cent of its exports.
Bradmill's chief executive, Mr Allan Kerr, said the recent overseas push reflected the company's increased productivity due to a $35 million capital investment program over the past four years. The result of this was an 80 per cent rise in its spinning capacity over the past three years.
However, more poignantly, Mr Kerr said the demise of the domestic textile market forced Bradmill to seek markets elsewhere. The local downturn had had an impact on the company's profits, which fell 27 per cent in the most recent financial year, despite a lift in overall sales from $84 million to $96.4 million.
Mr Kerr has also repeated grave concerns about the implications of the United States Government's decision to go ahead with action against Australian export companies benefiting from textile and automotive industry subsidies, which could have disastrous ramifications for his company.
He said Bradmill had spent between $30 million and $40 million in product development on the basis that the textile, clothing and footwear subsidy would be granted to them.
On the positive side, Bradmill has spent more than $9 million on research and development over the past four years, with $2 million being spent in 1995-96.
Its latest projects include a Government-assisted joint venture with Just Jeans, Geelong Woolcombers, Australian Country Spinners and Elders to develop a wool and denim blend fabric.
Bradmill is also working on a joint venture in Bangladesh. Mr Kerr said the company was keen to establish a manufacturing base overseas that was more cost-effective and better positioned to serve Asian and European markets.
Bradmill employs 850 people at its Yarraville premises, many of whom are new immigrants. In response, the company has started English-in-the-workplace programs. Other company-subsidised employee programs include workplace leadership certification, associate diplomas in textile technology and business administration degrees.
It has been a successful month for Bradmill. Last week it took out the Governor of Victoria's export award for large manufacturers.
© 1996 The Age