Investment from the city's administration is helping the hub maintain its position as the leading exporter in the line.

A well-established auxiliary network and strong government assistance have made Haining the largest producer of warp-knitted fabric in China.

Located in the southern part of Jiaxing in the northeastern section of Zhejiang province, the county-level city of Haining manufactures more than one-third of the country's supply of warp knits.

The hub's 325 fabric mills benefit from convenient access to fiber and machine suppliers. In fact, most makers have advanced warping machines in their factories, including Karl Mayer-brand units from Germany.

In addition, the presence of the Haining China Warp Knitting Science & Technology Industrial Zone has helped boost companies' competitiveness. Established in 1999, the zone now houses more than 200 warp-knitted fabric companies, including 12 large suppliers producing $10 million worth annually. It also has the country's only testing institute for warp knits, which the local government built in cooperation with the China Textile Information Center. Buyers in the US, the EU and Japan accept tests from this institute.

Moreover, the Haining city government invested more than $1 million in the development of wastewater treatment facilities within the zone. The base also has its own power plant. A dormitory that can accommodate more than 5,000 workers was built in the industrial zone as well.

Such developments have enticed various support companies to set up their offices in the center. Apart from fiber and machine suppliers, there are logistics, advertising, trading and IT companies within the industrial zone.

Further, the local government is helping suppliers to improve their R&D capability by organizing various trade shows and conferences, and building long-term relationships with textile fabric universities in Zhejiang. The industrial zone has also formed partnerships with textile colleges near Haining, including Donghua University in Shanghai, Southern Yangtze University in Jiangsu province and Tianjin Polytechnic University.

These factors have contributed to production of about $1.9 billion worth of warp knits in 2007. Annual growth is estimated to be at 30 percent.

Even with government support, the general R&D capability of Haining warp-knitted fabric companies remains weak. The majority of suppliers concentrate on OEM production and do not invest in R&D upgrades.

In addition, about 60 percent of exports are low-end models. Only the larger manufacturers are able to offer upscale designs.

To boost competitiveness, many suppliers are now planning to hire their own designers and release in-house collections in the months ahead.

All of the companies in this report have production facilities in the industrial zone. Among them, Haining Oushida Warp Knitting Co. Ltd focuses on garment-use warp knits, which are mostly 50 to 350gsm tricot fabric in widths of 120 to 230cm. Eighty-five percent of fabric is knitted for OEM clients and 5 percent carries the in-house brand. North America, Western Europe and Asia are the main export markets.

Haining Oushida adopts Karl Mayer high-speed warping machines. Its R&D team has an annual sampling capacity of 300 designs. Between 5 and 10 days are needed to finish countersamples. Normally, it takes two to five revisions before buyers approve the samples.

The R&D team is working on improving colorfastness, comfort and durability.

Products may be sent to SGS for colorfastness and other chemical tests.

Sixty percent of warp knits at Haining Chengrudan Reiforcement Fabric Co. Ltd are produced on an OEM basis. ODM and OBM orders account for 25 and 15 percent, respectively.

Apart from Karl Mayer equipment, warping machines from Liba in Germany are adopted. It takes five days to finish countersamples, with about 250 produced in a year.

In addition to garment-use warp knits, Zhejiang Texwell Textile Co. Ltd offers fabric for toys and luggage. It also makes EN 471-compliant fluorescent textiles. Products meet the Oeko-Tex Standard 100.

The company has its own testing center as well, which has a preconditioning room that meets adidas' criteria. Apart from this, the center has orbiter pilling and snagging, impulse random tumble, tensile strength, thermo, ironing shrinkage and phenol yellowing testers. It also has crocking meters, and washing and drying equipment for textile shrinkage testing.

OEM orders make up 70 percent of exports. Although the company has an in-house brand, OBM models account for just 5 percent of shipments.

Countersamples are finished in seven days. It takesabout three revisions before buyers approve the samples for mass production.

Eighty percent of fabric at Haining Wanfang Warp Knitting Co. Ltd is made for OEM clients and only 2 percent carry the in-house brand. Sampling takes 10 days.

Haining Haosheng Warp Knitting Co. Ltd adopts Karl Mayer equipment in production, of which 70 percent is under OEM contracts. The R&D team can finish countersamples in about eight days.