One of the most important effects of the complete privatization of Gobi was that the company would benefit from an influx of new R&D to upgrade its facilities and processing methods. A key goal for the JV consortium was upgrading the technology of Gobi’s factory, which the Mongolian government particularly welcomed. Indeed, for many years the company was relying on older, less efficient technology. Shortly after Gobi’s new Mongolian-Japanese majority owners took over in 2007, they implemented a five-year plan to significantly upgrade the company’s factory with modern, high-tech technology. This included installing fully automated knitting machines, new cleaning and shrinking equipment, and a new spinning machine developed by well-known Italian manufacturer Officine Guadino. Other upgrades include new fiber sorting, de-hairing, dyeing, mixing, and soft-sewing equipment. In addition, the factory was modernized further by improving its ventilation and plumbing equipment. Investing over US$12 million over five years, the project was completed in 2012 and has turned the company’s factory into a state-of-the-art operation that has increased production capacity and efficiency.