Chinese footwear manufacturer and official leather goods supplier for the Beijing 2008 Olympics, Aokang Group, is to co-develop an international fashion and leather goods centre, having signed an agreement with officials from the Shiling municipality, Guangzhou.

The company’s president, Wang Zhengtao, said the step was “an important move for the company in order to increase its performance in the domestic market."

Shiling is widely known as China's leather goods capital. It boasts more than 6,000 industrial and commercial units, with annual output exceeding 8 billion yuan ($1.2 billion).

Mr Wang said the company would focus on brand building and technology development in order to raise the profile of Chinese leather firms across the globe. Similar work will take place at its recently opened, 3,000 m² research and development centre in Dongguan.

The company is also co-organising the seventh China Leather and Leather Goods Festival, which will be held on October 30 in Guangzhou.