The factory is just south of Jinzhu Dong Lu ( Tsang Gyu Shar Lam), near Tibet University. It produces traditional Tibetan rugs for export worldwide through Guangzhou. Although the actual weaving and finishing are done by hand, using old-style vertical looms, some stages of the process, such as spinning, are now mechanized, and the dyeing is not done here. This factory is more modern than either the one in Gyantse or in Nedong. Traditionally, Tibetan women are the weavers and men the spinners, but today both work on rugs.

The rugs are typically quite small, with bold designs, bright colours and a deep, even pile-about 60 knots per square inch. Rug weaving is an ancient craft in Tibet, but because it was not for sacred use it was never considered an art. As a result, there are no rugs veritably earlier than the 19th century. Chemical dyes first appeared in Central Asia around 1870 and are now very widely used . Durable cotton warps and wefts were introduced into Tibet in the early 20th century.