Mainboard-listed China Gaoxian Fibre Fabric Holdings, the supplier of polyester yarn and fabric in China, announced that wholly-owned subsidiary Huaxiang (China) Premium Fibre Co. has agreed to acquire land of an aggregate area of 247,200 square metres from the local government of Balidian town in Huzhou city, Zhejiang province.

The group intends to fund the acquisition of around RMB200 million ($41 million) through internal sources.

The acquisition is made with a view to the group’s future expansion plans (including upstream production of polyethylene terephthalate (PET) chips, which are the primary raw materials used in the production of the group’s premium differentiated fine polyester yarn and warp knit fabrics).

The land is located in Balidian Town, Wuxing District, West Third Ring Road, Huzhou City, Zhejiang Province, China, and is located adjacent to the company’s existing production facilities, with a tenure of 50 years.