Cotton Supply Chain Leaders
Luthai:  Becoming the World’s Biggest Yarn-Dyed Mill

Luthai: Becoming the World’s Biggest Yarn-Dyed Mill

Requests for shorter lead times, higher quality, and more innovation are raising competitive standards even higher.


Luthai Textile Co. Limited is tackling these challenges head on – and winning! 


The China-based company is a specialist in 100% yarn-dyed fabrics, of which 70% are all cotton and the rest are blends with high-end fibers such as cotton/wool, cotton/cashmere, and cotton/linen.


Today, Luthai is the world’s largest producer of yarn-dyed fabrics, as well as being the biggest producer of wrinkle-free fabrics.  It produces 16 million meters per month in its China facilities and 3 million meters per month in Vietnam, with the Vietnam capacity planned to double to 6 million meters per month.


The company has its own water treatment facilities and each factory has been designed to meet or exceed international standards for sustainability.


Luthai has moved to the top of the industry through ongoing investment in new technology, design resources, as well as a commitment to using the best materials.


The company aims to help revitalize China’s textile industry by bringing technological developments and design creativity into its business model.



Time is Money

Saving time has become almost as vital as saving money.  Buyers are demanding shorter lead times and Luthai is continually looking for ways to make deliveries faster.


“We work very closely with our biggest customers on the planning for each season.  We stock the greige yarn for the season so that when the buyer decides on the final product we can quickly go into the dyeing and weaving stages,” said Leo Wang, Assistant General Manager.  “We can offer these customers super short lead times – as fast as 23 days.”


Luthai works with most of the world’s top menswear brands including Brooks Brothers, Mens Warehouse, Calvin Klein, Hugo Boss, Olymp, Marks & Spencer, Uniqlo, and many others.


The company has a dedicated system for each of its top customers to ensure that production – from design to delivery – is very smooth.


Luthai also has 6-7 million meters of some of its popular items in-stock.  This is ideal for smaller brands since there is no minimum order and the fabric can be shipped immediately.  Each season, the company adds new designs to their in-stock program so buyers have fresh products to choose from.


Global Footprint

Although Luthai started out supplying the major Western brands, it has since expanded its market reach into developing markets.


“We are promoting our fabric in India as a luxury fabric.  Since most men’s shirts in India are purchased at tailor shops where the customer selects the fabric, we weave the name Luthai Supima into the selvedge.  This has been very successful and customers have come to recognize our fabric as the choice for high quality,” said Mr. Wang.



It All Comes Down to Quality

Quality has become a top priority for consumers and that starts with using the best raw materials.


“Our quality is good because we use the best cotton, the best finishing, and the best machines,” said Mr. Wang.


“We choose U.S. cotton because of its quality standard.  It’s very clean, so there are no black fibers and no contamination.  This is very important when making white or pastel fabrics.   Also the fiber length is very stable, which  saves us time during production and creates a fabric with a very smooth, clean surface,” he said, explaining that Luthai buys both short and long stable U.S. cotton.


“U.S. cotton is machine picked so it is cleaner and the quality is more standard,” he added.


“Customers recognize that U.S. cotton is better and many customers nominate U.S. cotton, especially pima (U.S. grown extra long staple cotton).”



Staying Ahead of the Market

Having achieved huge success, Luthai is always looking for new ways that will keep the company in its lead position.


It has expanded its product range from shirting fabrics to include fabrics for jackets and pants.  It is also offering knitted fabrics now, as well as wovens.


“Customers want cotton fabrics  for more than shirts so we are diversifying our products to meet their needs,” said Mr. Wang.


“We are a very innovation oriented company, so we are continually looking for new technology that will drive our dyeing, weaving, and spinning operations forward. 


“This is why we are still growing, even in a very competitive market,” he said.


The COTTON USA Advantage

  • Family farmers who are committed to working their fields sustainably and leaving them better for the world.
  • A long history of innovative harvesting and ginning technology that results in higher-quality cotton.
  • One of the highest rates of adoption in the world for Precision Agriculture, which encourages less water and pesticide usage.
  • U.S. farmers operate under voluminous, stringent, and enforceable regulations.
  • A commitment to transparent partnership that is unmatched anywhere.
  • One of the most comprehensive systems for monitoring and measuring all the key metrics involved in sustainability.


US Cotton Facts

  • 2/3 of U.S. cotton land uses only rain water
  • U.S. cotton water use efficiency has improved by 82% over the past 35 years 
  • Cotton is carbon footprint neutral, meaning the plants remove more greenhouse gasses than production produces.