Shandong Ruyi Group, China’s leading wool and suit producer, has hinted that it would need more superfine wool to cater to the luxury market.

The announcement follows the company’s acquisition of a sheep station in Victoria last year for a price of Au$ 14 million to enhance its superfine wool availability.

Madame Ding, Vice President of Shandong Ruyi Group, said demand for luxury suits is increasing at a rate of 30 percent per annum.

She said the firm already has a special Royal Ruyi line, featured in luxury suits segment, which requires around 500,000 metres of fabric, in addition to the 20 million metres that the company produces each year from superfine wool to cater to its medium to high end men’s suits segment.

Welcoming Shandong Ruyi’s intention to buy more superfine wool, the Tasmanian superfine wool growers have invited the Chinese firm to be a member of their national association - Australian Superfine Woolgrowers Association.

The woolgrowers expect that the Chinese firm’s move would boost the prices of the speciality fibre, which presently are in doldrums, and thus prevent farmers from giving up growing the speciality fibre.