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Last Updated: Saturday, 4 August 2007, 11:37 GMT 12:37 UK
Textile takeover talks confirmed
A worker in a Chinese cashmere factory
The Chinese company said it was keen to enlist Scots expertise
A leading Scottish textile business has confirmed that it has held takeover talks with a Chinese cashmere firm.

Dawson International said there had been "very preliminary discussions" with the potential buyer, the Lingwu Zhongyin Cashmere Company.

Dawson owns yarn spinners Todd and Duncan in Kinross and Barrie knitwear makers in Hawick, Scottish Borders.

The Chinese company said it was keen to get into the lucrative international market using Scottish expertise.

The talks were confirmed in a statement issued by Dawson International.

Its board said the discussions "may or may not" lead to an acquisition of all or part of the Scottish company.

"The nature of these discussions is such that there can be no certainty that any offer will be made or as to the terms on which any offer might be made," said the statement.

Scotland is one of the big three cashmere importers, along with Italy and the US, and a large section of the Scots textile industry has made a niche for itself in the cashmere processing business.

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06 Sep 06 |  South of Scotland

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