Texhong to buy state-owned yarn and fabric maker in Jiangsu
Source: Inteletex Date: 2006-08-04
Hong Kong's Texhong Textile Group Limited has bought state-owned Yizheng Chemical Fiber Changzhou Daming Company, PR China, for RMB98.6 million (HK$94.8M. or US$12.2M.).
Yizheng Chemical Fiber Changzhou Daming Company (Yizheng Daming), located in Chanzhou, Jiangsu Province, is owned by Yihua Group Company (80%) and Changzhou Municipal People's Government (20%).
The acquisition will boost to Texhong's yarn and fabric production capacity. Yizheng Daming has a total production capacity of approximately 67,000 spindles and 104 air-jet looms. Upon completion of the acquisition, Texhong's production capacity will be increased to 467,000 spindles and 826 air-jet looms.
Mr. Hong Tianzhu, chairman of Texhong commented, "We have accumulated a wealth of successful experience in acquisitions of state-owned enterprises and expanded rapidly in the past years. The acquisition of Yizheng Daming represents a good opportunity for the Group to increase its production capacity in a cost effective manner.
We are confident that we can fully utilize the existing production facilities of Yizheng Daming to create synergy within the Group and to generate profits in the near future."
Yizheng Daming makes mainly yarn, garment and bedroom products. Texhong is one of the largest high value-added core- spun cotton textile manufacturers in the PR China. It supplies yarn, grey fabrics and garment fabrics, especially high value-added spandex stretch yarn and fabrics.
