Other ZMP factories will also go in the reorganisation, with the closure of Rochefort in France and Rosas in Spain claiming another 258 jobs. The first redundancies are expected in December this year.

A ZMP statement says its market position has been weakened by increasing competition, mainly from Asian countries, affecting products where price has become the decisive purchase criterion.

The resulting downward trend has led to decreasing volumes and a reduction in sales of about 15%. Under current market conditions, this would lead to a €10m reduction in sales by 2010.

ZMP aims to restore the recreational sector's competitiveness by focusing on aggressive business development linked to an ambitious innovation strategy in high-growth, up-market segments with high potential, and a defensive action plan to maintain the company’s current position in the most vulnerable segments.

The group says it is keen to retain its expertise and to continue to operate production sites in Europe, but needs to streamline production over four sites - Toulouse and St Jean d'Iliac in France, Figueras in Spain and Domsod in Hungary - before the end of 2010.

The company says it is aware of its responsibility towards each affected employee and will act as a responsible employer, respecting its employees and open for discussion.