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Yarn & Knitwear Super Stars

From Small Business to International Powerhouse

Lugang leverages R&D to create the exact products that customers are looking for.

Author: IF Research Dept/Saturday, June 11, 2016/Categories: Jun 2016, Yarn & Knitwear Stars

It takes certain level of the dedication to transform a small town business into a successful publicly listed company. Lugang Science & Technology Co. Ltd (江苏鹿港科技股份有限公司)is one of the few companies in China that has made this transition.  It is the combination of big vision and down-to-earth hard work that made the company one of China’s most recognized yarn suppliers selling to international brands such as Gap, Ann Taylor, Uniqlo and others.

Lugang Science & Technology was founded in 1985 to produce acrylic yarns.  The company had just 5000 spindles.  By May 2010, the company went public.  Now it  has a 40,000 tons annual capacity and its products include worsted, semi-worsted, coarse yarn and fancy yarn. 

Creating Their Customers’ Vision 

For Lugang, it’s all about investing in R&D. “ We develop products based on what the customer want…our R&D team can make the exact product for them,” said Hou Wenbin, general manager at Lugang. 

 “We are involved with our customers’ design teams at a very early stage. They envision what the end product would look like, then we develop the product exactly to fit their needs,” said Mr. Hou. 

Last season, Lugang launched its new anti-piling wool yarn. By improving the existing technology, the company was able to achieve a 3 or 4 pill grade (ASTM D3512-82 where 1 is severe pilling and 5 is no pilling) in its worsted yarn. Compared to typical products in the market, which are usually below 2.5 grade, it has a much better hand feel and longer life cycle.

Investing in Technology

Lugang has invested in the latest machinery from European manufacturers such as, PAFA (Italy), NSC (France), and Oerlikon (Switzerland), which gives the company the capability to develop new and innovative products. 

This year, the company introduced the new three-color spinning system from PAFA that are able to take in three different colored fibers instead of the two different colors in the traditional system. The result is a much richer color combination and more flexibility in design. 


The Triple Threat 

Consistent quality, competitive price, and flexible delivery time are all part of Lugang’s winning formula.  The company produces more than 40,000 tons of yarns every year and able to deliver as fast as in 25 days. 

“With more than 30 years of experience, we understand how to make yarns. We have very consistent quality, and established ourselves as one of the most reliable suppliers in the market. Because we have huge scale, we are able to negotiate a better price with raw material suppliers. We can get the best raw material at the cheapest prices,” said Mr. Hou, explaining how Lugang can achieve much competitive prices than many of its competitors. 

“We have strong experience managing production so we can handle all kinds of last minute orders, even during the peak season. Buyers can rest assured that their orders will be delivered on time,” he said. 

The Right Platform for the Right Market

Lugang understand the importance of marketing and chooses to work with SPINEXPO to promote its products. 

“SPINEXPO is a high-level, professional, integrated platform for the industry,” said Mr. Hou, explaining why they have participated in SPINEXPO for so many years. “As a exhibitor, it is a wonderful place for us to showcase our new technology and new products,” he said. 

“SPINEXPO is also a good place to discover new trends and find inspiration for product development. The show has very good quality trend forums, which truly broadened our horizons,” said Mr. Hou.

Expanding Overseas 

As the competition in China gets more and more intensive, Lugang is looking for opportunities overseas. The company recently set up a production facility in Vietnam to supply local knitters. 

“We considered Bangladesh, Vietnam, and Cambodia, but we eventually, we decided to set up a factory in Vietnam because one of our big customers moved some of its production to Vietnam and we want to be there to support them.  Our goal is always to better serve our customer, and faster delivery an important way to do this.”

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