One of Switzerland's leading producers of women's tights and stockings, Iril, is to axe 140 production jobs as part of a merger with Polish firm Ferax, it was announced on Friday.

The new company, which will be called Ferax-Iril, will be based in Poland but will set up a sales and marketing arm in Switzerland called Iril Services Sarl.

Financial terms of the merge were not disclosed, but Iril lost $1.8 million in 2001 on a turnover of $14.2m.