Scottish based textile firm Dawson International Plc revealed today (19 November) that is in talks to sell its Todd & Duncan cashmere yarn spinning business to a Chinese fibre firm.

Ningxia Zhongyin Cashmere Co already supplies cashmere fibre to Todd & Duncan, and has says if its bid is successful it will maintain the existing Scottish manufacturing base and its workforce.

In the year ended 29 December, 2007 Todd & Duncan manufactured 300 tonnes of cashmere yarn and had net operating assets of GBP17.5m (US$26.7m).

In September, Dawson International said turnover had risen 4% to GBP41.7m in the six months to 28 June, but expressed caution about prospects for the rest of the year.

A month earlier, the company sold its loss-making Dorma bed linen arm to Dunelm Group for GBP5m.