. Background    

1. Construction Scale: Import world leading and domestic advanced suite of equipment including chute feed card, auto-leveler draw box, bobbin and fly frame, compact spinning frame and automatic spooler, as well as auxiliaries. Build plant area of 60,000 square meters and form a spinning scale of 135,000 compact ring spindles. When the project is completed, an annual output of 13,000 tons of top grade combing compact yarns will be achieved. The total investment of the project is RMB393.2 million (including USD6.8 million), of which RMB320 million is fixed assets investment and RMB73.2 is initial working capital.   
2. Characteristics of Products Compact spinning is an emerging new technology, providing yarns with the following advantages:
      (1) Improved yarn structure, high straightness of yarn fiber, lower bulking intensity compared with common ring spinning yarn, less hairiness and smooth yarn.
      (2) Improved quality of resultant yarn, most importantly a sharp drop of hairiness in resultant yarn, secondly the considerable enhancement in strength and breaking elongation with the same twist.
      (3) Ecological production process. With little hairiness, the process of singeing can be omitted; the reduced desizing amount can save the waxing process. The absence of singeing process leads to the reduction of cotton used and will reduce the environmental pollution.
      (4)Comfortable wearing of compact spinning fabric. The limited hairiness and high straightness of compact spinning fabrics are of high abrasion resistance, nice luster, clear cloth cover, especially the printing or jacquard fabric will be clearer. For the twist can be reduced by about 20% to realize the same strength of resultant yarn, the fabric feels even, soft and fine, with largely improved comfort, which is an ideal yarn used for top grade knitting and tatting fabric.
3. The products in this project are mainly oriented as the top grade high count compact spinning combing yarn without knots, which is welcomed by the market. Product plan: pure cotton JC18.2TEX(32S)-JC4.9TEX(120S) combing compact spinning yarn and other types of products developed according to the market.

. Economic Benefit Analysis

       By the completion of this project, the annual output of top grade high count combing compact spinning yarn can reach 8,500 tons, with sales revenue of RMB360 million, increased profit of RMB28,9 million, increased taxation of RMB17,8 million, foreign exchange of USD30 million.