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Luthai Textile to set up new plant for yarn-dyed fabric
Sep '11
Luthai Textile Co. Ltd., the world's largest manufacturer of top-grade yarn-dyed fabric, has announced plans to invest 505 million Yuan to set up a new plant.

The new yarn-dyed fabric unit will have an annual capacity to produce 40 million metres of fabric.

In 2008, Luthai had raised 950.81 million Yuan and allocated 200 million Yuan from the same for strengthening of its sales network. But, over the last three years, the company has utilized only 19.25 percent of that amount towards advertising, opening outlets and online sales.

Now, the company has decided to reduce investment on its sales network and utilize the remaining funds to increase its high-end fabric manufacturing capacity as well as to optimize its product structure.

The latest move of Luthai comes in the wake of the decision by European and Japanese manufacturers of mid-range and high-end yarn-dyed fabrics to relocate to China.

Fibre2fashion News Desk - China

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