China-Japan joint venture to form yarn

China's largest cotton textile maker, Weiqiao Textile Company Ltd, said on Thursday it would set up a joint venture with Japan's Itochu Corp in China to make compact yarn and other types of yarn.
The venture to be set up in China's eastern province of Shandong with registered capital of US $15.43 million will be 75 percent held by Weiqiao and 25 percent by itochu, it said in a statement.
Total capital commitment of Weiqiao will be US $11.75 million.It said the joint venture could expand and diversify the company's product portfolio, and optimise the structure of its products.
Itochu is a customer of Weiqiao and holds a 10.2 percent stake in Shandong Luteng Textile Co Ltd, a 75 percent owned subsidiary of Weiqiao.
Shares of Weiqiao, which was listed in Hong Kong last September, ended at HK $12.90 on Wednesday after rising about 42 percent in the past three months.