Tianhong textile (02678) announced that the Haihe Industrial Zone, which holds 78% and 22% stake in chairman Hong Tianzhu and co chief executive Zhu Yongxiang, will purchase the first phase of Vietnam's land, which costs about 349 billion 217 million Dong Dong (about 106 million yuan), while the second land price is to be implemented.

The first and two sites are located in Haihe Industrial Zone, Haihe District, Guangning, Vietnam, with a total area of about 512 thousand and 400 square meters. The first phase of the land area is about 249 thousand and 900 square meters, and the second phase land area is about 262 thousand and 500 square meters. The first phase is calculated at 1 million 397 thousand and 400 Vietnamese Dong (about 424 yuan) per square metre, and Haihe industrial area will undertake the infrastructure and roads surrounding the site.

The group has acquired a number of sites in Haihe industrial area to build a production workshop for textile products. After reorganizing the mainland's knitted fabric dyeing business, it intends to establish a large scale knitted fabric dyeing production base in Vietnam.