Ka Wang Holding, the parent company of Ka Wang Department Stores in Southern China, is in the midst of negotiations to acquire a cotton fibre and yarn manufacturing facility in the Henan Providence of Northern China.

The unnamed factory is located on 60 acres with 40 acres under roof.

Mio LokTin, CEO, said the acquisition would help Ka Wang to control the output of its fabrics, increase gross margin and better serve customers with more custom-made designs, especially for private labels in the US and European markets.

The acquisition is expected to be completed by the end of the year.