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Joan Fabrics in production venture with Hangzhou Yongsheng

Tynsboro, Mass. — Joan Fabrics Corp. has entered into a joint venture with the Hangzhou Yongsheng Textile Group to build a state-of-the-art textile manufacturing complex in Hangzhou, China. Construction will begin in early summer 2006 and initial production will begin in the first quarter of 2007.

Elkin McCallum, chairman of Joan, said, “As we looked at our strategic options in China, it has become apparent that we must provide to our customers not only a broad array of textile products but a total package of textile solutions to meet the competitive challenges our industry now faces.”

The new facility will include jacquard weaving, velvet weaving, finishing and cut and sew when complete. In addition, the Yongsheng Group co-ventures on a dyeing and finishing facility for the manufacture of suede and other piece-dyed products, and this capability will be available to the Joan Fabrics joint venture.

In April 2003, McCallum announced plans for a JV in China with The Cha Textile Group of China to manufacture jacquard flat goods as well as the finishing, cutting and sewing of home upholstery fabrics and the production of woven greige goods. That project did not move forward. Joan also has manufacturing facilities in Mexico.

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