Fabric supplier Swift Galey is setting up two China-based joint ventures in partnership with domestic company Lucky Textile Group, which is based in the Jiangsu Province.

Swift Galey will partner with Lucky in its existing dyeing and finishing facility in Yixing City, China, and the two businesses will also establish a manufacturing facility to make premium denim in Yixing.

Financial details of the partnership were not disclosed. The two ventures, which are subject to approval by the Chinese government, are expected to be finalised by the end of the year.

Swift Galey chief executive John Heldrich said: "These ventures, which reflect the strategic focus and support of our owners, Patriarch Partners, LLC, are part of a well-conceived growth plan for our company and underscore our long-term vision for servicing the fashion and apparel industries".

The twill and poplin dyeing and finishing manufacturing facility will have a capacity of 70 million yards per year. 

Construction of the denim manufacturing facility is expected to be completed in time for the 2007 back-to-school season. The facility will have a capacity of 300m yards annually, with plans to expand to 50m yards per year.

Swift Galey will immediately begin assimilating the Lucky product offerings and establishing seamless customer service. The joint ventures will be known as Swift Galey Lucky.

Swift Galey supplies denim, khaki, and corduroy fabrics for the apparel, uniform, and home furnishings markets. The company has a presence in Canada, Europe, Mexico, North Africa, the Philippines, and the US. The company is made up of twill, poplin, and corduroy fabrics maker Galey & Lord and global denim brand Swift Denim.

Lucky Textile Group is a family-owned company, which has been operating weaving, dyeing, and finishing facilities in Jiangsu Province, China for more than 30 years.