Spanish stretch fabrics maker Dogi is to cut 160 jobs in Spain and lower its domestic output by 30% as it continues to streamline its business.

The move marks the second time that the Barcelona-based company, which is engaged in a major expansion plan, has trimmed its headcount this year.

Earlier in the year Dogi made 99 workers redundant as part of a cost-cutting plan to shift manufacturing to cheaper production posts abroad.

The new redundancy scheme is part of a similar goal.

In a regulatory statement, Dogi said it would shift another 30% of its less-profitable production lines to Asian factories in China, Thailand and the Philippines.

The action will see most workers leave its largest Spanish manufacturing facilities in El Masnou in Barcelona, which the company is rebuilding.

The plan, which will see Dogi's Spanish workforce dwindle to 300, will cost the firm EUR4.5m (US$7.3m), taking its total redundancy costs to EUR8m if the last cuts are factored in.

Dogi plans to turn a profit in 2007 after years of losses.

The company is expanding in the US (With the EFA acquisition), Asia and Latin America. It has a high-profile line of "anti-ageing" fabrics in the pipeline to bolster future profits.

By Ivan Castano.