The integration of Lanxi Tianxianfang Linen Co. is complete and we continue to realize cost saving benefits from this acquisition. Through the addition of a bleaching factory and our upgraded linen yarn dyeing facility, we move closer to our long term goal of becoming a fully integrated linen producer, which should further drive margin expansion and allow us to offer a full range of linen products and services to our customers. International sales remained robust, accounting for 58% of revenues in the second quarter, as fashion trends across Europe and Asia continued to favor pure linen products and accessories, and consumers increasingly recognized the quality and value of these products.
As fashion trends across Europe and Asia favor pure linen products and accessories, and consumers increasingly recognize the quality and value of these products, we believe the linen market will continue to expand in 2011. In addition, higher overall cotton prices make linen more affordable on a relative basis and give us another reason to be optimistic about our business prospects going forward.
China Linen Textile Industr announced that on December 20, 2010, the Company commenced operations at its new linen yarn dyeing facility. "We are very pleased to commence operations at our new linen yarn dyeing facility. The new dyeing capability will further expand our vertically integrated business model downstream and enhance our competitive position. We are confident that this new facility will further to increase our gross margin in fiscal year 2011."