France’s lace producer Desseilles acquired by Chinese group Yongsheng

Desseilles, one of the oldest lace producers in France which produces six million meters of lace, with many well known international brands such as Victoria’s Secret as their client has been acquired by Chinese group, Hangzhou Yongsheng, textile and apparel producer.

Desseilles products two kinds of lace products, and holds second and the third place in terms of market share. Desseilles had a 5.4 million euro sales revenue in 2015, and 8.3 million in 2014. After the acquisition, the company’s plan is to become the No 1 lace producer, said Michel Berrier, general director of Desseilles.

The lacemaker currently exports 70% of its output, chiefly in Asia.

Yongsheng will bring them not only financial benefit but access to new markets, especially the Chinese market. They can offer more designs to Yongsheng as they are considered as the leading company in lace and designs.

According to Berrier, their strengths 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.

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.

Yongsheng group with main business of textile, their business covers the relative textile industries from weaving and dyeing, and finishing to garment processing, which assure them the ability to control quality and lead innovation in almost every aspects of textile Industry. They have engaged in textile products import and export for nearly 5 years, and their customers are mainly from Europe, North America and Middle East, etc.

They also have wide and efficient domestic textile products sales network. Wide business network provides them plenty and efficient information to direct their business orientation.