Superior Essex has announced it is to close its magnet wire plant in Chauny, France at a cost of €12 million ($18.8 million). The plant, which dates back to 1922, was bought by Superior last year and operates under the company’s Essex SAS subsidiary. The closure of the plant will bring production capacity in line with demand the company said. Just under $16 million of the charges related to the closure is for employee severance costs with the rest for equipment relocation and disposal.

A review of the plant began three months ago before the sale of Superior Essex to LS Cable was agreed.

Meanwhile LS Cable said its first half operating profit increased by over 50% with the Middle East and China leading global demand through the development of utilities and phone lines to meet power needs and internet usage. The chief executive of LS Cable, Christopher Koo, said orders from the Middle East are likely to increase by 80% this year to $450 million. Mr Koo said he expects global cable demand to increase by 4% a year to 2011, with China increasing by 8% annually.