Fabric firm Shanghai Three Gun (Group) Co Ltd on Monday began production at its new 303 million yuan (US$36.5 million) plant. The 150,000 square metre facility has an annual production capacity of 30 million metres of knit fabrics, and will expand Three Gun's presence at the top end of the domestic market where more than 50 per cent of the fabric used by the country's garment makers has to be imported.