Mitsubishi Corp is to consolidate its four knitted fabric firms into a single wholly owned subsidiary.

The company says the move is aimed at increasing operating efficiency and expanding its knitwear line-up to have more appeal with apparel manufacturers.

The existing businesses will be liquidated, and all operations and employees transferred to the new entity, which will be capitalised at 490 million yen.

Operations are due to begin in August with a staff of 140, and first-year sales are targeted at 11 billion yen.