CHINA'S largest ultra-fine woollen fabric processor is to develop a sheep flock in Victoria.
The move is part of an agreement with Benalla-based Jema Genetics.
Integrated Chinese textile manufacturer Shandong Ruyi has signed with Jema Genetics to develop an ultra-fine sheep flock at Larundel, near Ballarat.
The Weekly Times reported in November that Larundel had been sold to Chinese investors for a rumoured $14 million.
The arrangement involves a research partnership with Australia's Deakin University and two Chinese universities.
Jema Genetics chairman Ian Gill said Shandon Ruyi wanted to establish an elite flock of at least 1000 ultra fine sheep.