CHINA: China Linen Textile Industry, Ltd. Expands Production Capacity Of Line

China Linen Textile Industry, Ltd., a China-based company engaged in the production and sale of linen yarn and various types of linen fabric, announced that it has expanded its linen yarn production capacity and added the capability to bleach linen fabric by entering into a Fixed Asset Lease Agreement with Lanxi Tianqianfang Linen Co., Ltd. (the "Lessor").

We believe the leased facility, which includes a building with an area of 23,358 square feet, a spinning production line with 3,000 spindles, bleaching machines and other equipment, will increase the Company's annual capacity by approximately 620 tons of linen yarn, or 39%, and 2.1 million meters of linen fabric, or about 26%, which is expected to add approximately $4.9 million in revenue, $1.5 million in gross profit and $1.2 million in net income over the next twelve months. The bleaching factory, with annual capacity to bleach 10 million meters of linen fabric, is expected to generate approximately $1.5 million in additional net income over the next twelve months. China Linen has commenced operation at the leased facility and expects to generate approximately $1.4 million in net income in the second half of 2010 from its new facility.

"We are pleased to sign this lease agreement which enables us to address our short-term capacity constraints while providing an option to acquire the facility," stated Mr. Gao Ren, chairman and president of China Linen. "We have seen an increase in demand from domestic and international customers this year, and this lease agreement enables us to fulfill more of those orders and improve our 2010 financial performance. In addition, we believe the bleaching facility will add a downstream vertical component to our value chain and further increase our gross margin. We plan to pursue more orders with the goal of full utilization of the leased facility and increasing our profit further for 2010 and 2011."

The lease term is for a period of twelve months, which commenced on July 1, 2010. China Linen intends to acquire all of the equity of the Lessor at some future date pursuant to a non-binding Company Acquisition Intent Agreement entered into between China Linen and the Lessor on April 26, 2010. In the event the Lessor arranges to transfer or sell the Facility to a third party during the term, or within the six-month period following the term, China Linen will have a right of first refusal to enter into such arrangements to acquire the facility under the same terms and conditions as were negotiated by the third party.

About China Linen Textile Industry, Ltd.
China Linen Textile Industry, Ltd. is principally engaged in the production and sale of linen yarn and various types of linen fabric. The Company is also involved in consultation and R&D related to linen technology and linen products. The Company carries on all of its business activities through its subsidiary, Heilongjiang Lanxi Sunrise Linen Textile Industry Co., Ltd. ("Lanxi Sunrise"), established in June 2002 and located in Lanxi County, the "Homeland of Flax in China," near Harbin City in China.

Lanxi Sunrise has one yarn-spinning factory and two fabric weaving factories in its 28,000 square meters of building area with a staff of 1,500 and 310 sets of world-class, advanced production machinery. Annual production capacity totals approximately 1,600 tons with 50 different types of yarn and 8 million meters of fabric with 110 types. Approximately 55 percent of its products are exported to more than 10 countries.


Send your News/Releases for publication to [email protected]
Added: July 23, 2010 Source: PR-USA
Start script - 1529667077.3823 Start news id check - 1529667077.3824 After news id check - 1529667077.3827 After cookie_code - 1529667077.7986 Before news detail - 1529667077.7986 After news detail - 1529667077.7992 Start cat select - 1529667077.7993 After cat select - 1529667077.7996 before preg replace - 1529667077.7996 After preg replace - 1529667077.7996 Before tag engine - 1529667077.7997 After tag engine - 1529667077.8034 Before mptt engine - 1529667077.8034 After mptt engine - 1529667077.8034 Before related engine - 1529667077.8034 After related engine - 1529667077.8048 Before update hits - 1529667077.8049 After update hits - 1529667077.805 After update news_hits - 1529667077.8062 After mem_only_views - 1529667077.8062 -------------------------------------------------- Total Exec time:- 0.42390012741089
AddThis Social Bookmark Button   Tell a friendBookmark AddThis Feed Button
Related News:

Website design by InWiz • © - 2000-2018. Internet Wizards All rights reserved. About usTerms & ConditionsDisclaimerPrivacy policy • 22-06-2018