Gaoxian to set up PET chip plant

With an investment of RMB 200 million, China Gaoxian Fibre Fabric Holdings Ltd has signed a deal with the domestic government of Balidian Town, Huzhou City, Zhejiang Province, China, for acquisition of land of an approximate area of 247,200 square metres.

The new acquisition was made, keeping in mind, Gaoxian s future expansion plans, including setting up of a production plant of polyethylene terephthalate (PET) chips. These chips are the primary inputs utilised in the manufacturing of the group s premium differentiated fine polyester yarn and warp knit fabrics.

The new land is situated adjacent to the firm s current production facilities, and the deal has a time period of 50 years. As of March 31, 2010, the group had acquired via its businesses RMB 663.7 million and therefore plans to fund its acquisition with the help of internal sources.