Three Korean-funded fabric factories are now fully operational in Huainan in central China's Anhui province, making this area a leading South Korean industrial zone.

Worsted fabric maker Anhui Xinhao Textile Co Ltd has been funded with US$26 million from South Korea's Shinwoo Co Ltd. It boasts 22,000 spindles imported from Germany and Italy and is expected to produce 6,000 tons of worsted fabrics and a million ready-to-wear garments annually.

All of its products will be exported to Europe, America, Japan and Korea and are expected to bring in $25 million of foreign exchange for the company.

Also funded by Shinwoo is linen textile maker Anhui Dongfang Textile Co Ltd. Financed with an investment of $7.5 million, it is expected to earn $6 million from exports.

The third new company is Dongxin Textile, which is equipped with $12 million worth of imported facilities and funded by Myungjin Co Ltd. It will produce 6.4 million metres of cloth and fabrics a year.