International Textile Group Inc has widened its second quarter losses to $17m, from $7m in the same period last year, despite increased sales from recent acquisitions.

The company said in a Form-10Q filing yesterday (20 August) that its $84m purchase of industrial fabrics maker BST Safety Textiles (BST) in April has boosted net sales by 42% to $263.9m.

International Textile Group was created in 2004 when financier Wilbur Ross bought the assets of Cone Mills and Burlington Industries out of bankruptcy and combined the companies together.

The Greensboro, North Carolina based firm, which makes denim and other apparel fabrics, as well as technical and specialty textiles, is in the process of transforming itself into a global provider of textiles and related supply chain solutions.

Earlier this year it announced plans to invest more than $300m on four offshore manufacturing plants in China, Vietnam and Nicaragua which are due to become operational in 2007 and early 2008.