Groupe Cheynet, Europe's leading producer of elastic for women's lingerie, is planning to close its plant in Chambon-Feugerolles during the coming months, as part of restructuring measures in its narrow fabrics segment.

The plant, near St Etienne in central France, was acquired by Cheynet in 2005 and last year generated a turnover of EUR4.8m (US$6.53m). The workforce of around 100 staff will benefit from a EUR2m redundancy programme.

In 2006, Cheynet reduced staff numbers at its US subsidiary, Narrow Fabric Industry, from 360 to 160 and closed its workshop in Romania.

The firm's Thai subsidiary, Cheynet Asia, is poised to diversify from dyeing and packaging into elastic manufacturing as it becomes a global service provider to the Asian market.

By Stuart Todd.