Chinese textile and knitwear concern Shanghai Haixin Group is to use its purchase of two North American factories from bankrupt Glenoit Intermediate Holding as a stepping stone into the US and European markets. The $25 million acquisition deal was announced on 19 April and has just been given regulatory approval.

Haixin will buy a factory in North Carolina and one in Ontario, Canada from textile materials and garments maker Glenoit for $14 million. The purchases will include land, equipment and warehouse facilities. An additional $1 million will be spent on intermediary and processing fees and another $10 million for working capital in the two factories.

Haixin's says the acquisition will boost its nap fibre production capacity to more than 25 per cent of the world's total. The company currently exports nearly $200 million worth of fabrics every year.

Glenoit has 46 different textile material brands and developed fabrics for casual and outdoor wear for customers such as Lands' End. The firm filed for Chapter 11 bankruptcy protection in August 2000.