Potter Cao Jingen finds the peace and inspiration of the factory ideal for his creations.

Old factories that no longer serve their original purposes are standing derelict in empty post-industrial neighborhoods, beginning to decay beyond repair.

But in Hangzhou, these old buildings don't die. They are winning a second life and becoming transformed into studios for artists.

Silian 166 Art Zone, once the site of Hangzhou Silk and Dyeing Plant built in the 1950s, today is a fashion and art landmark in the city, a Hangzhou version of Shanghai's M50 and Beijing's 798 gallery zone.

Visitors can see artists at work in their studios, while young professionals visit to see edgy work. Designers find their niche here and find inspiration from the industrial ruins.

Designed by former Soviet Union architects in the 1950s and with construction supervised by experts from the former German Democratic Republic, the factory covers an area of 20,000 square meters with buildings as high as five to seven stories.

Located on 166 Lishui Road in the eastern side of the Great Canal built in Sui Dynasty (AD 581-618) that linked ancient Beijing and Hangzhou, the silk factory was once the largest textile manufacturer in the country, processing tons of silkworm cocoons each day. In the early 1980s when China carried out its reform and opening-up policy, competition in the textile and dyeing industry became fierce.

The state-owned factory's giant industrial chain was broken by many private companies and eventually lost its edge in the market. It has almost stopped silk manufacturing today, with only one workshop still in operation.

The factory marks a milestone of Hangzhou's industrial history and in 2007 it was listed as one of the city's industrial heritage buildings for preservation. After a one-year renovation, the area's 6,600 square meters has been turned into the Silian 166 Art Zone.

An influx of painters, designers, photographers and collectors from Hangzhou, Shanghai, Italy and France poured in and set up their art studios in the old factory which was once full of huge ventilating fans, grinding wheels and silk reeling machines.

Cao Jingen moved into this art zone last year. The 65-year-old potter has been making porcelain vases, cups and other pieces for more than 40 years. His pottery skills were passed down from his ancestors, and his father and grandfather were potters.