"Zhejiang could produce 80,000 tons of cocoons annually at its peak, but currently it has dropped to 20,000 tons," said Jin Yao, chairman of the company.

Facing rising silk prices brought about by the shrinking industry, Babei decided to produce its own necktie material and joined with scientists to develop silkworm raising techniques seven years ago.

It has been a bumpy road toward success. Silkworms are extremely fragile. One dead worm could cause mass deaths and lead to the breakdown of a whole production line, Jin said.

The company encountered large-scale silkworms deaths several times. Researchers carried out some 100 experiments on disease prevention and came up with effective disease prevention methods, according to Jin.

The company owns 18 patents, and it plans to further expand the silkworm raising facilities in the near future.

Qian Youqing, deputy head of China Silk Association, calls the industrialized silkworm-raising a "breakthrough" of sericulture, which can inject vitality into traditional silk culture.