Eight years after its inception, china's modernization plan is now producing positive results in printed silk fabrics. This is particularly true for the Kaidi Silk Company of Hangzhou, where much of the work is now automated and where advanced textile chemicals are used. Like other successful silk fabric manufacturers in China, Kaidi is about to diversify. Plans include the construction of a $20 million hotel and department store at the company's downtown location. In the mid 1980s, the company borrowed $2.6 million from the government and entered into an information exchange with the German textile company KBC, which, since 1987, has invested $25 million in machinery and technology in Kaidi and has received finished fabrics in return. Kaidi now prints all standard varieties of 100 percent silk fabrics. It employs 1,500 workers, 300 of whom are in apparel production. Output in 1992 totaled $30 million and included 13 million yards of printed silk fabrics, 4.5 million yards of unfinished or sand washed silk fabrics, and 500,000 garments. Kaidi's sales are expected to increase 20 percent in 1994.