A wool textile research institute has been founded in Longkou, Shandong province.

At present, most of the top-quality wool is imported. Nearly 80 percent of the wool produced in China is of low quality, which is an obstacle for the development of the country's fashion industry, says Song Riyou, general manager of Shandong Nanshan Textitle Apparel Company.

The institute, co-founded by Xi'an Polytechnic University and the company, aims to develop top materials for China's fashion industry.