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Yongsheng group acquires one of France's largest lace producers

By Tuo Yannan in Paris and Wang Zhuoqiong in Beijing (chinadaily.com.cn) Updated: 2016-04-05 13:25

The textile and apparel producer Hangzhou Yongsheng Group has acquired Desseilles, one of the oldest lace producers in France.

Michel Berrier, general director of Desseilles, in an interview with China Daily, said the company produces two kinds of lace products, and holds second and the third place in terms of market share. After the acquisition, the company's plan is to become the No 1 lace producer.

Desseilles had a 5.4 million euro sales revenue in 2015, and 8.3 million in 2014. The company produces six million meters of lace, with many well-known international brands such as Victoria's Secret, as their clients.

"Yongsheng will bring us the financial benefit as well as the access to new markets, especially the Chinese market," said Berrier.

"We can offer more designs to Yongsheng as we are considered as the leading company in lace and designs."

The director said their strengths also lie in the possibility of bringing products which do not exist in China, especially the ones using traditional methods, "with sophisticated and complicated world leading technique," according to Berrier.

Desseilles encountered a legal problem before the acquisition, as former employees sued the company for violations of French labor law and the court sentenced the company to be fined 1 million euros. Desseilles could not pay the 1 million so it started its liquidation process. However, after they signed the agreement with Yongsheng, the court withdrew the fine.

In the agreement, the French company has a plan to reduce its employees from 74 to 60, and it has already got the green light from the authority this time.

"The 60 employees who will keep their jobs are mostly skilled workers, but the idea is to come back to 74 or 76 employees within two years," Berrier said.

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