Shanghai Haixin (Group) is paying US$25m to purchase fabric plants and trademarks from Glenoit, a US maker of homefurnishing fabrics, Bloomberg reported. The assets include plush fabric factories in North Carolina and Ontario.
Haixin said that the purchase would increase its annual fluffy fabric output by one-third. Already the biggest plush-toy maker in China, it plans to become the biggest in the world. Haixin said that as much as 70 per cent of its exports go to the US, with the rest destined for Australia, Hong Kong and Japan.
Glenoit is being liquidated after filing for bankruptcy, because its clothing fabric business had been damaged by low-priced imports from China and other parts of Asia.