Yarn makers Marzotto and Verzoletto have scheduled their wool yarn joint venture - Fili Vivi Srl -  to be established on 1 July, according to a joint statement released by the companies.

The launch of the JV, which will produce spun-wool knitwear, will create the largest group in its category in Europe and one of the world's biggest.

The capital of the group, which will consist of two subsidiaries called Lanerossi Filati and Folco, will be held equally between Marzotto and Verzoletto.

The JV is expected to produce 15 million kilogrammes of yarn annually.

German and Austrian authorities have cleared the operation, and the companies are now awaiting clearance from Turkey.