Napier's 'Design Spun', spinning mill is closing, as well as its dye house - with 26 jobs going

The mill's operated for more than 40 years, but ramping down production after August 31.

Managing director Brendan Jackson says their equipment's relocating to Christchurch's Wild Earth Yarns.

He says he's proud it means yarn will keep being produced in New Zealand - maintaining a local supply option.

Design Spun's retail store and Skeinz brand continue - and will still stock Kiwi-made yarn.