German fabric producers Fritz Blanke Textilveredlung and Julius Boos jr (Boos Textil Elastics) have set up a €15 million joint venture factory in China to make stretch knitted fabrics for the lingerie trade.

The 10,000 square metre site is situated  in Heshan, Guangdong Province, South-China and will house production, finishing and dyeing facilities.

The companies say that the first commercial deliveries should take place during the fourth quarter of 2005, with the knitted fabrics being delivered straight from China.