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Josh Title knows a thing or two about the shmatte business. His paternal grandfather owned Title Dress, a women's-wear company once located on Spadina Avenue. His other grandfather also worked in the garment district, buying fabrics for men's-wear company Shiffer-Hillman.

Mr. Title works with fabrics too. His Toronto-based, one-year-old company Cate & Levi transforms old sweaters into whimsical, handmade, one-of-a-kind children's toys and artwork.

Unlike many toy manufacturers, Mr. Title doesn't offshore production. Just as in his grandfathers' era, when Spadina Avenue was known as much for manufacturing as kosher delis, Mr. Title makes his products in Toronto.

Manufacturing locally "is sort of a lost art," he says. But there are benefits to it. "Within the kids' market, there is value attached to being made in Canada. People associate that with quality," the entrepreneur says.

"We sell to customers who care about one of three tenets: made in Canada, eco-conscious and/or one-of-a-kind."

In the company's studio, which is on the second floor of a red brick building near Dovercourt and Dupont, three graduates of the Ontario College of Art and Design transform discarded sweaters into colourful hand puppets, artwork and stuffed animals of various shapes and sizes.

Argyle sweaters become cuddly teddy bears. A pink-striped sweater gets new life as floppy ears for a bunny-rabbit doll. A white cable-knit sweater turns into the body of a sheep doll. "That gets a laugh out of everyone," Mr. Title says. "People love a sheep wearing a sweater."

Re-purposing old sweaters is just one way Cate & Levi is eco-friendly. The toys also have a smaller carbon footprint than those made overseas and shipped here.Another advantage to manufacturing in Toronto is that it allows Mr. Title to ensure high quality control. In addition to three full-time staff, Mr. Title contracts seven local craftspeople to sew parts of the dolls. One stuffed animal can have 36 colourful pieces sewn together. "Nothing gets shipped without our final examination," he says.

Producing the toys here is also more expensive - and Cate & Levi's prices reflect that. Online, the company's hand puppets cost $35, artwork is $45 and large stuffed animals are $85.

But the adorable, stylish products aren't only for the wealthy. "It appeals to people who might not ultimately spend more. They might just consume less but consume better," Mr. Title says.

Cate & Levi's products are sold at 500 stores, including Anthropologie. Last year, the company shipped over 10,000 units to stores and online customers. "We're expecting growth of at least 300 per cent for 2010," says Mr. Title, holding a stack of orders from a recent New York trade show.

Some days, Mr. Title is surprised to find himself in a studio full of old sweaters waiting to be turned into toys. He has a law degree and articled at a business law firm. Asked how he wound up working with fabrics in Toronto, he smiles and says, "Sometimes I think it's just in my blood."

Special to The Globe and Mail

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