Yarn and fabric maker Olcese SpA is to shut its plant in Trieste, Longarone and Conegliano with the loss of 256 jobs.

There will also be job losses at its plant in Sondrio, but the factory in Cogno will continue to operate.

Olcese reported a loss of €19.2 million in 2003. The company's turnover fell to €79.2m in 2003 from €126.4m in 2002.