(This text material comes from chinadaily.com.cn.For reference only. )

Erdos Group has already made a major impacton the world stage and now it plans to expand its international operation fromits Ordos headquarters.

The world's largest manufacturer ofcashmere products has about 30 percent of the global market from its base inthe Inner Mongolia autonomous region.

With more than 40,000 staff, the Chineseconglomerate is valued at about 70 billion yuan ($10.4 billion) with a salesrevenue of more than 40 billion yuan annually.

"We are still building our brand upand we will go even further," said Zhang Meirong, general manager of thegroup's cashmere operation. "There are excellent internationalopportunities out there in Europe, the United States and Japan."

Up to 70 percent of the world's cashmerecomes from China, according to Zhang, at 8,400 metric tons. Garments made fromthe fabric are usually warm and soft, and can be expensive.

But with large herds of goats, InnerMongolia has become China's epicenter for the industry with 60 percent of thecountry's cashmere coming from the region.

"Cashmere from the goats here is purewhite," Zhang said. "They boast great properties in terms ofthickness and length, good enough to make high-quality clothes."

"It makes very good clothes," sheadded.

Founded in 1979, Erdos Group, also known asthe Inner Mongolia Erdos Group Co Ltd, is now a sprawling company involved inenergy projects and metallurgy.

But its core business is still cashmereprocessing and production, although the past few years have been challenging asinternational brands moved into China.

"We have certainly met thesechallenges in recent years," Zhang said. "The competition andshrinking market forced serval brands to close. But we have managed to expandour business by making the right moves," she added.

Last year, the group upgraded its labelsand diversified to help satisfy different consumer trends.

The 1436 fabric line, which was launched adecade ago, uses fiber less than 14.5 micrometers thick and more than 36millimeters long. It is the cornerstone of the company's luxury cashmereoperation.

Still, the old Erdos brand has been splitinto four labels, 1436, Erdos 1980, Erdos and Blue Erdos.

Erdos 1980 is tailored toward the moreaffluent, mature customer with classic designs.

As for Erdos, it tends to targetwell-educated middle class clients who look for quality and fashion.

Finally, Blue Erdos has been rolled out fora younger market, featuring simple designs at affordable prices.

"From that division, we have yieldedgood results with sales volume increasing by 15 percent to 20 percent annuallyfor three consecutive years," Zhang said.

To cater for rising demand, the group hasincreased its production.

More than 10 million cashmere products willbe manufactured this year, while the company now has a design studio in Milan,Italy, as well as the US.

"About 50 percent of our products areexported to European countries and the US," Zhang said. "We alsoexport to Japan."