Stretched-fabric maker Dogi International Fabrics SA on Friday posted a far wider first half net loss amid falling sales and impact of the war in Iraq, SARS crisis and weak European economic environment.

The company reported a net loss for the six months to June 30 of 4.49 million euros versus 1.77 million euros last year as sales slumped 22 per cent to 75.4 million euros from 96.6 million euros in the year prior.

Dogi, which operates factories in China, the Philippines and Thailand, plus as well as Europe and Mexico, said restructuring at its plant in Mexico reduced sales by five million euros.

It plans to double capacity at its Chinese plant to eight million metres by 2005 compared to last year’s four million metres of fabric as part of plans to boost its presence in Asia.

Chairman Josep Domenech added in a news release: "Here (in Europe) the outlook for 2004 is very favourable once the new products we are developing are launched."