Chinese-owned cashmere firm wraps up deal to buy factory

CASHMERE yarn spinner Todd & Duncan has bought its Kinross factory from its landlord for an undisclosed sum and unveiled plans for a "centre of excellence" on the site.

Managing director Ian McGrattan said it signalled Chinese owner Zhongyin's commitment to producing yarn in Scotland.

Dawson International sold Todd & Duncan – whose customers include Burberry, Gucci and Prada – to Zhongyin for 8.4 million in September, after 18 months of negotiations.

McGrattan said this year would involve "consolidation" of the business, which will include explaining the new ownership to customers in the United States and Italy, before "real growth" next year.

The firm has an annual income of 20m and employs about 200 people at its factory on the banks of Loch Leven.

McGrattan expects growth to come from China and from Japan and Korea, where he said there was a growing appetite for higher-quality yarn.

"Being part of Zhongyin now means we're an integrated business with security of supply," he said. "If we take on new contracts, we don't have to go searching China for fresh supplies – we can get the wool from our parent company.

"One of the first things Zhongyin did when it took over was to look at the lease on our factory. Now that we own the site, we can begin building for the future."

Todd & Duncan plans to create a "centre for excellence" by working with equipment manufacturers on the research and development of machinery for yarn spinning and inviting students to use its design studio, building on its existing relationship with the Royal College of Art.

The company was founded in 1867 in Alva, Clackmannanshire, produced the first commercial cashmere in 1894 and moved its base to Kinross in 1906.