China Linen begins operations at new linen yarn dyeing facility

China Linen Textile Industry Ltd, a China-based producer of linen yarn and fabric, announced that on December 20, 2010, the Company commenced operations at its new linen yarn dyeing facility.

China Linen completed construction and equipment testing of the new dyeing facility on Dec. 21, 2010. The facility is located in Lanxi County, Heilongjiang province, adjacent to its linen yarn and fabric production facility. The new 23,681 square foot facility will add 600 tons of linen yarn dyeing capacity per year.

"We are very pleased to commence operations at our new linen yarn dyeing facility," commented Mr. Gao Ren, Chairman and CEO of China Linen. "The new dyeing capability will further expand our vertically integrated business model downstream and enhance our competitive position. We are confident that this new facility will further to increase our gross margin in fiscal year 2011."

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.