Austrian-based Lenzing AG, which produces a fifth of the world's cellulose fiber, set up its first subsidiary on China's mainland in Shanghai yesterday and aims to double its exports to China in two to three years.

The wholly owned Shanghai subsidiary will be responsible for sales, marketing, logistics and technical support of Lenzing's fiber products.

It will also act as a matchmaker between local textile makers and overseas buyers. "As the world's leading textile exporter, China's sales of specialty fibers are developing rapidly, creating good opportunities for Lenzing,"
said Thomas Fahnemann, chief executive officer of Lenzing AG.

"The Shanghai office is a key step for Lenzing to tap the Chinese market," he added. "It will reinforce our foothold in China, which is a textile and garment manufacturing center, and more importantly, a vast consumer base for us."

Lenzing aims to double its current sales to China in two to three years and then triple its current level in another two years.