Embattled Spanish stretch-fibres maker Dogi Group will move its corporate headquarters to the industrial site of El Masnou, Barcelona, where it is building a new textiles plant set to come on stream next July.

The company said the action caps a restructuring plan to improve its business. However, it did not reiterate whether the plan will translate into a profit in 2007 - as it pledged it would do and as the market expects - after years of losses.

The company could not immediately be reached for further comment.

Dogi recently shut two inefficient factories to consolidate production at the El Masnou site, which it is reconverting. The move required some 200 layoffs triggering heavy union protests.

With the El Masnou plan, "the aim is to raise levels of efficiency, effectiveness and profitability as high as possible, in pursuit of the final goal of the best possible service to the customer", the company said in a statement emailed to just-style.

Dogi, which has been expanding production in Asia , makes stretch fibres for big underwear and swimwear brands such as Victoria Secret.