China Gaoxian Fibre Fabric Holdings, the supplier of premium differentiated fine polyester yarn and Warp Knit Fabric, said fully-owned subsidiary, Fujian New Huawei Fibre Dyeing Co., has used RMB87.2 million ($17.9 million) of its Initial Public Offering (IPO) net proceeds of $78.3 million for the acquisition of 50 knitting machines for the production of Warp Knit Fabric (WKF).

The new machines are expected to be fully installed by the end of second quarter of FY2010 (2Q10) and will boost the group’s maximum production capacity for WKF by 88% to 32,000 tonnes from 17,000 tonnes as at end 2009. The capacity expansion is expected to contribute positively to the group’s top-line growth starting from 3Q10.