Textile manufacturer Art Textile Technology International is gearing up for a dramatic increase in its production capacity and aims with two years to earn 20 per cent of its revenues from exports from none now. The firm will begin operating a second production line next month, almost doubling its annual production capacity to 51 million square metres from 28 million sqm. The new line will operate at 50 per cent capacity for the first three months, rising after that. 'Currently our market is in China. The China market is growing quickly,' vice-chairman Chen Jindong said. Art Textile's sales grew 23 per cent to $201.51 million in the second half of last year and net profit rose 23.5 per cent to $39.3 million. 'In the next one to two years, we hope to have 20 per cent of our sales overseas, mainly from Europe and the US,' Mr Chen said. The firm has some small orders from Europe and is in talks with potential customers in the United States, Europe and Japan. Art Textile is working with European fabric designers and textile distributors in its efforts to expand into the continent. It also plans to sell home furnishing and industrial fabric to Japan and North America. Art Textile now sells its fabric to wholesalers and directlto garment manufacturers. In the second half of last year, its gross margin was 29.06 per cent and its net margin was 19.5 per cent, nearly the same as the previous year. The firm is able to maintain relatively high margins because of its expertise in design and dyeing, CLSA analyst Mabel Wong said. 'Art Textile's products are generally sold at a higher price against peers because of its higher quality,' she said.